Can you help me understand what it means to find the “combined present value” from the question below?
You are scheduled to receive a $430 cash flow in one year, a $930 cash flow in two years, and pay a $730 payment in three years. Interest rates are 8 percent per year.
Combining Present ValuesCombining present values simply means adding up all the present values of cash flows of futurepayment series. Therefore we calculate for the combined or total discounted…