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15 August, 21:32

Insulorinc. is expecting cash flows of $67,000 at the end of each year for the next five years. if the firm's discount rate is 17 percent, what is the present value of this annuity?

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  1. 16 August, 01:19
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    Answer: $214,356.19 Explanation: Present value of Annuity = P[ (1 - (1+r) ^-n) / r] = 67000 (1 - (1+0.17) ^-5/0.17) = 214,356.19
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