Homework SourseHelp Thelp 1000 points 1234567 Do not round intermediate cal
Help Thelp 10.00 points 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) 533 AM
Solution
Present Value of the deal is calculated as followed:
| Year | Cash Flow | Discounting factor@11% | Present Value@11% |
| 2015 | 8.7 | 0.9009 | 7.8378 |
| 2016 | 10.1 | 0.8116 | 8.1972 |
| 2017 | 11.1 | 0.7312 | 8.1163 |
| 2018 | 11.2 | 0.6587 | 7.3774 |
| 2019 | 11.2 | 0.5935 | 6.6472 |
| 2020 | 11.4 | 0.5246 | 5.9804 |
| Present Value | 44.16million | ||
