Compute what is the present value of stream of cash flows

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Problem 1: What is the present value of the following stream of cash flows assuming an interest rate of 7.00%? (Hint: This question requires Excel.) Next year you will receive $200. The following year you will receive an amount that is 3.00% larger (than $200). The cash flows will continue to grow, year-by-year, at 3.00%. The last cash flow will be paid at year 20 (20 years from today--20 cash flows in total.) Round your answer to the nearest dollar.

Reference no: EM133004482

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