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compute the present value for 14 years, interest rate 8% future value $16,151
Solution
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=$16151/1.08^14
=$16151*0.340461041
which is equal to
=$5498.79(Approx)(Please note that intermediate calculations have not been rounded off].

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compute the present value for 14 years, interest rate 8 future valu.pdf

  • 1. compute the present value for 14 years, interest rate 8% future value $16,151 Solution Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period) =$16151/1.08^14 =$16151*0.340461041 which is equal to =$5498.79(Approx)(Please note that intermediate calculations have not been rounded off].