If $ 12 comma 000 is invested in a certain business at the start of the year, the investor will receive $ 3 comma 600 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3% per year? A. $ 2 comma 210

The present value of the business opportunity is the difference between the present value of the streams cash inflow and the initial investment cost

PV of streams of cash inflows:

PV of cash flow =A × (1- (1+r)^(-n) )/r

A- 3,600, r- 3%, n- 4

= 3,600 × (1 -(1.03^(-4) )/0.03

=$13,381.55

PV of the business opportunity

= $13,381.55 - 12,000

= $1,381.55

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If $ 12 comma 000 is invested in a certain business at the start of the​ year, the investor will receive $ 3 comma 600 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3​% per​ year? A. $ 2 comma 210

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If $ 12 comma 000 is invested in a certain business at the start of the year, the investor will receive $ 3 comma 600 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3% per year? A. $ 2 comma 210