You estimate that the little drive-through coffee kiosk you own will generate ordinary annuity after-tax cash flows of $150,000 per year for the next ten years
If you discount these cash flows at an annual rate of 14%, what is the present value of your expected cash flows?
A) $782,417.35
B) $891,955.78
C) $1,500,000.00
D) $2,900,594.27
Answer: A
Explanation: A)
PV = PMT × = $150,000 × = $782,417.35.
MODE = END
INPUT 10 14 ? -150,000 0
KEY N I/Y PV PMT FV
CPT 782,417.35
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