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Insulorinc. is expecting cash flows of $67,000 at the end of each year for the next five years. if the firm's discount rate is 17 percent, what is the present value of this annuity?
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Insulorinc. is expecting cash flows of $67,000 at the end of each year for the next five years. if the firm's discount rate is 17 percent, what is the present value of this annuity?

User Rylee
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Answer: $214,356.19 Explanation: Present value of Annuity = P[(1-(1+r)^-n)/r] = 67000(1-(1+0.17)^-5/0.17) = 214,356.19
User Gyorgy
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