Hey guys just wondering if you could help me figure this one out?
An asset purchased at the beginning of the financial year is expected to return $5000 at the end of the current financial year, $10000 at the end of the next financial year and $15000 at the end of the following financial year. Determine the present value of these expected returns, assuming capital can be invested at 6% per annum, payable quarterly.
I already have the answer of $26133.84
I need assistance with the working out to get the answer?
The Present value formula is P= R(1-(1+i)^-n)/i