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Homework answers / question archive / Assume that the correct discount rate for the following cash flows is 8%
Assume that the correct discount rate for the following cash flows is 8%. Today is January 1, year 1. Calculate the present value of each of the following cash flows.
a. $50 at the end of 3 years, i.e., December 31, year 3
b. $50 at the end of 100 years, i.e., December 31, year 100
c. $50 received at the end of each year for 20 years, i.e., December 31 each year from year 1 to year 20
d. $50 received at the beginning of each year for 20 years, i.e., January 1 each year from year 1 to year 20
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