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Maria expects to receive a payment of $30,000 in 4 years. At a discount rate of 14%, what is the present value of this payment? Solution Present Value Factor @14% for 4 years =1/(1+14%)^4 0.59208 Multiplying it by 30000 =30000*0.59208 17762.4 Present value of 30000 received at the end of the 4 years is 17762.40.

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Maria expects to receive a payment of $30,000 in 4 years. At a discount rate of 14%, what is the present value of this payment? Solution Present Value Factor @14% for 4 years =1/(1+14%)^4 0.59208 Multiplying it by 30000 =30000*0.59208 17762.4 Present value of 30000 received at the end of the 4 years is 17762.40

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  • 1. Maria expects to receive a payment of $30,000 in 4 years. At a discount rate of 14%, what is the present value of this payment? Solution Present Value Factor @14% for 4 years =1/(1+14%)^4 0.59208 Multiplying it by 30000 =30000*0.59208 17762.4 Present value of 30000 received at the end of the 4 years is 17762.40