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tetleyelmo tetleyelmo
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7 years ago
Express Airlines is considering the purchase of an aircraft to supplement its current fleet. In estimating the impact of adding this aircraft to the fleet, management has developed the following expected cash flows:

Year   Cash Flow
1   -$1,000
2   $100,000
3   $100,000
4   $100,000
5   $100,000
6   $100,000
7   -$300,000

If the discount rate is 10%, what is the present value of these estimated flows? (Round to the nearest whole dollar)
A) $379,080   
B) $224,211   
C) $189,760   
D) $154,869   
E) $199,000
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 1st
Authors:
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BlimpBlimp
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7 years ago
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Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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tetleyelmo Author
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7 years ago
Thank you, thank you, thank you!
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