What is the present value of your firms cash flows for years

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Reference no: EM131047277

Your consulting firm will produce cash flows of $130,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 6.6%, and you anticipate inflation of about 2.6%.

What is the present value of your firm’s cash flows for years 1 through 5? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

How would your answer to (a) change if you anticipated no growth in cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131047277

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