Question 2.2: What is the present value of two cash flows, $100.00 and $20...
What is the present value of two cash flows, $100.00 and $200.00, to be received at the end of one and two periods from now, respectively, if the time value of money is 0.10?
| Pireod t |
Cash Flow X_{t} |
present Value Factors PVF(t,0.10) |
Present Value PV |
| 1 | $ 100 | 0.9091 | $ 90.91 |
| 2 | 200 | 0.8264 | 165.28 |
| Total present value using 0.10 = $ 256.19 | |||
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