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Global Investments is considering a project that will produce cash inflows of $11,000 in year 1,...

Global Investments is considering a project that will produce cash inflows of $11,000 in year 1, $24,000 in year 2, and $36,000 in year 3. What is the present value of these cash inflows if the company assigns the project a discount rate of 12 percent?

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Answer #1

Present value of these cash inflows = $11,000/1.12 + $24,000/1.122 + $36,000/1.123

Present value of these cash inflows = $54,578.17

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