Present value of an ordinary annuity: Dynamics Telecommunications Corp. has made an investment in another company...
Present value of an ordinary annuity: Dynamics Telecommunications Corp. has made an investment in another company that will guarantee it a cash flow of $22,500 each year for the next five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment? use excel formula for answer
Homework Answers
PMT =22500
Number of years =5
Rate =15%
PV using excel formula =PV(15%,5,-225000) =754234.90
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Present value of an ordinary annuity: Dynamics
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