a) 328/1.10^1 + 470/1.10^2 + 156/1.10^3
b) 25000 / 1.06^6
a) A project produces the following cash flow:
Year Flow
1 328
2 470
3 156
If the discount rate is 10 percent, compounded annually, what is the
project's present value?
b) What is the present value of $ 25,000 to be received in 3 years if the interest rate is 12 percent, compounded bi-annually (twice a year)?