# Answer to Question #123000 in Finance for Nini

Question #123000
1)Cash inflows expected from a project are $28,000 for year 1,$22,000 for year 2, $20,000 for year 3,$25,000 for year 4 and $20,000 for year 5. Given the discount rate of 10%, what is the total present value of cash flow of this project? 2)Melinda needs to accumulate$50,000. In order to do so, she plans to save at the start of every year starting today for 10 years with an interest rate of 10% per annum. How much will she need to deposit every year to reach that amount?
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2020-06-24T13:45:15-0400

1)Cash inflows expected from a project are $28,000 for year 1,$22,000 for year 2, $20,000 for year 3,$25,000 for year 4 and $20,000 for year 5. Given the discount rate of 10%, what is the total present value of cash flow of this project? We calculate the present value of a cashflow using the formula: 2)Melinda needs to accumulate$50,000. In order to do so, she plans to save at the start of every year starting today for 10 years with an interest rate of 10% per annum. How much will she need to deposit every year to reach that amount?

The future value of an annuity is given as:

Therefore:

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