Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 6

Calculate the present value of an investment with the following expected cash flows at a discount rate of 10 percent: year 1 = $500, year 2 = $600, and year 3 = $650. Recalculate the present value at discount rates of 15 percent and 5 percent.