Ajax Corp. is expecting the following cash flows $79,000, $112,000, $1

QUESTION

Ajax Corp. is expecting the following cash flows $79,000, $112,000, $164,000, $84,000, and $242,000 over the next 5 years. if the companys opportunity cost is 15%, what is the present value of these cash flows ? (round to the nearest dollar)
Amount (in $) Present value is calculated as follows :- Year Cash Flow PVF @15% PV 1 79,000 0.870 68,730 2 112,000 0.756 84,672 3 164,000 0.658 107,912 4 84,000 0.572 48,048 5 242,000 0.497 120,274 Net

resent Value 429,636 PVF = Present Value Factor PV = Present Value Present Value of cash flows is cash flows discounted at a given rate

ANSWER:

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