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The P is the present value of the cash flow stream
P = 100 / (1+10%)^1 + 50 / (1+10%)^2 + 100 / (1+10%)^3
= 207.36
Solution
The P is the present value of the cash flow stream
P = 100 / (1+10%)^1 + 50 / (1+10%)^2 + 100 / (1+10%)^3
= 207.36

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  • 1. The P is the present value of the cash flow stream P = 100 / (1+10%)^1 + 50 / (1+10%)^2 + 100 / (1+10%)^3 = 207.36 Solution The P is the present value of the cash flow stream P = 100 / (1+10%)^1 + 50 / (1+10%)^2 + 100 / (1+10%)^3 = 207.36