You are paid to teach classes for the university and wonder how much money the university makes from your graduate-level classes
Based on historical data, you determine that your summer classes for the next seven years will generate an average annual revenue of $93,850. If you discount these cash flows at an annual rate of 8.30%, what is the present value of the expected cash flows?
A) $656,950.00
B) $845,133.52
C) $483,644.36
D) $523,786.85
Answer: C
Explanation: C)
PV = PMT × = $93,850 × = $483,644.36.
MODE = END
INPUT 7 8.3 ? -93,850 0
KEY N I/Y PV PMT FV
CPT 483,644.36
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