Homework answers / question archive / If the interest rate is 5% and cash flows are $500 at the end of year one, $1000 at the end of year two, and $2000 at the end of year three, what is the present value of these cash flows? Instead of this stream of revenues, would you consider receiving a lump sum of $3200 now? 

If the interest rate is 5% and cash flows are $500 at the end of year one, $1000 at the end of year two, and $2000 at the end of year three, what is the present value of these cash flows? Instead of this stream of revenues, would you consider receiving a lump sum of $3200 now? 

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If the interest rate is 5% and cash flows are $500 at the end of year one, $1000 at the end of year two, and $2000 at the end of year three, what is the present value of these cash flows? Instead of this stream of revenues, would you consider receiving a lump sum of $3200 now?