Determine the present worth of this series of cash flows

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A person you trust asks you to loan them $2,000 at the end of year 1, $1,000 at the end of year 2, nothing in year 3, and then they will pay you $1,000 in year 4, $2,000 in year 5, and $3,000 in year 6. They note that you will pay out a total of $3,000 to them, and then they will pay back $6,000 to you, allowing you to ‘‘double your money’’. If you make 12% per year on your investments, determine the present worth of this series of cash flows.

Reference no: EM13851071

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