Calculate the present value of the differential annuity

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Reference no: EM132853736

Consider a 20 year project with the following portion of cash flows.

Years Cash flows

1-6 years4,000 p.a.7-10 years

5,000 p.a.

11-17 years

8,000p.a.

18-20 years

12,000 p.a.

Suppose the cost of capital is 12%. The annuity between years 11-14 is received at the beginning of each period. Calculate the present value of the differential annuity.

Reference no: EM132853736

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