FIN – The receipts for XYZ Plating are estimated to be $5,000 in the first year

August 14th, 2017

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The receipts for XYZ Plating are estimated to be $5,000 in the first year; $3,000 in the second, zero in the third, and $2,000 in the fourth. Using an interest rate of 6%, what is the present value of these expected receipts? Is this a better present value than $2,500 each year over four years?

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FIN – The receipts for XYZ Plating are estimated to be $5,000 in the first year

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