Question

You will receive $100 at the end of year one, $200 at the end of year two, and $300 at the end of year three. What is the present value of these cash flows today if the discount rate is 13 percent annually?

options:
a) $553
b) $423
c) $453
d) $383

Answer 1

d

Explanation:

add year 1 then year 2 rhen year 3 times 13 and divides by 100

Answer 2

d) $383

Explanation:

we add Year 1+year 2+year 3 answer ×13 divided by 100