Тестовый вопрос
An annual event created $100,000 positive cash ow this year. The cash ow is expected to grow by 2% per year, if it continues. The probability of this event to continue for every next year is 95%. Discount rate is 7%. Assume that the cash flows are generated at the end of each year and that if the event is once canceled, it generates 0 cash flows in all subsequent years forever. Choose the number closest to the Present Value of the expected future cash flows in the following two years.
The cash ow in each of the following years can be calculated by adding 2% to the previous year's cash flow. PV of cash ow is calculated by dividing cash ow by, where t is the number of years since today. Expected discounted cash flow is calculated by multiplying discounted cash ow by probability of a project happening in a given year t, which is . All this is summarized in the table:
