What is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? Cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. Draw a time line.
$9,233
750 + 2450(1.08)-1+3175(1.08)-2+4400(1.08)-3 =
750 + 2268.52 + 2722.05 + 3492.86 = 9233.43