Present value of each of the cash-flows

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Calculate the present value of each of the following cash-flows.

$25,000 received at the end of 5 years at an expected rate of return (ERR) of 8%

$5,000 received at the end of 2 years and $12,000 received at the end of 5 years with an ERR of 7%

$1,200 received at the end of each of the next 10 years with an ERR of 9%

$1,500 received at the end of each of the next 5 years, with final payout of 25,000 at the end of the 5th year. Assume an ERR of 8%

Your investment has a 70% chance of a return of $1,000,000 at the end of 5 years, a 20% chance of returning $500,000 and a 10% chance of $0 return. Assume an ERR of 7%.

Reference no: EM131669374

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