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Answer :
The total of all the present values of the payments is $2,973,483.
What is the present value?
The present value is the future cash flows discounted to the present day's values.
The present value can be determined using an online finance calculator that inputs the future cash flows, the interest rate, and the period.
How is the total present value determined?
The total present value is a function of the summation of the four present values.
Since the present values are given, computing the total involves the mathematical operation of addition.
Present Values:
1st payment $320,640
2nd payment $787,116
3rd payment $878,611
4th payment $987,116
Total PV $2,973,483
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Answer:
The correct answer is $878,611 for plato users
Step-by-step explanation:
