Question

An investment, which is worth $55,000.00 and has an expected return of 14.00 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 6 years from today. What is the present value of the annual cash flow that is expected in 3 years from today? $14,143.66 (plus or minus 10 dollars) $9,546.57 (plus or minus 10 dollars) $11,250.51 (plus or minus 10 dollars) $12,406.72 (plus or minus 10 dollars) none of the answers are within 10 dollars of the correct answer 

          An investment, which is worth $55,000.00 and has an expected return of 14.00 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 6 years from today. What is the present value of the annual cash flow that is expected in 3 years from today?
  $14,143.66 (plus or minus 10 dollars)
  $9,546.57 (plus or minus 10 dollars)
  $11,250.51 (plus or minus 10 dollars)
  $12,406.72 (plus or minus 10 dollars)
  none of the answers are within 10 dollars of the correct answer
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Added by Nicholas H.

Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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An investment, which is worth $55,000.00 and has an expected return of 14.00 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 6 years from today. What is the present value of the annual cash flow that is expected in 3 years from today? $14,143.66 (plus or minus 10 dollars) $9,546.57 (plus or minus 10 dollars) $11,250.51 (plus or minus 10 dollars) $12,406.72 (plus or minus 10 dollars) none of the answers are within 10 dollars of the correct answer
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Transcript

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00:01 Hello students, here is a question.
00:02 What is the present value of the following uneven cash flow stream? the appropriate interest rate is 10 % compounded annually.
00:09 Year amount is 0, 100, 200 and for the third it is 200, fourth is 100.
00:15 So, what is the future value of 100 after 3 years under 10 % monthly compounding? we sometimes need to find out how long it takes to sum up the money to grow some specified amount.
00:26 For example, if a company's sales are growing at a rate of 6 % per year, how long will it take to sell the double? so, this is our question.
00:35 Let us calculate the answer for this.
00:41 So, we need to prepare a present value of cash flow, calculation of present value of cash flow.
00:57 So, the columns are year, cash flow and present value for 10%, at 10%...
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