Answer to Question #125956 in Finance for Syafiq

Question #125956

Mr Shahrezza expected return from an investment are as follows: RM 80,000 per year for the first five years, RM 10,000 at the year end of 6 and RM 100,000 at the end of year 7. If the interest rate is at 8%, what is the present value of the cash flows by today?


1
Expert's answer
2020-07-15T10:03:34-0400

"NPV=\\frac{80,000}{(1+0.08)^1}+\\frac{80,000}{(1+0.08)^2}+\\frac{80,000}{(1+0.08)^3}+\\frac{80,000}{(1+0.08)^4}+\\frac{80,000}{(1+0.08)^5}+\\frac{10,000}{(1+0.08)^6}+\\frac{100,000}{(1+0.08)^7}=384,067.54"


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