The present discounted value of future payment streams of $500 now plus $500 one year from now and $500 two years from now, given a discount rate of 5%, is

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     PDV= -$500+$500/(1+5%)+$500/(1+5%)2
      PDV=$500+$500/(1+5%)2
      PDV=$500+$500/(1+5%)+$500/(1+5%)2
      PDV=$500/(1+5%)+$500/(1+5%)2
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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PDV=$500+$500/(1+5%)+$500/(1+5%)2
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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