Dale Cooper just signed an annual contract for $100 a month parking garage (twelve payments of...
Dale Cooper just signed an annual contract for $100 a month parking garage (twelve payments of $100). He considers his opportunity cost of money to be 12% annually for discounting. What is the present value of the parking contract?
Homework Answers
Present value is calculated using the PV function as follows:-
=PV(rate,nper,pmt)
=PV(12%/12,12,-100)
=1125.51
Or calculate using a financial calculator, by calculating for PV and punch in:-
I/Y=1%
N=12
PMT =-100
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