Fishermen’s corp. is considering purchasing a boat. if the boat was purchased, it is expected to receive $20,000 at the end of the first year, $40,000 at the end of the second year, and $60,000 at the end of the third year within its business.
what is the boat worth to fishermen’s corp today, assume an 8% discount rate.
$120,000$100,440$47,640$98,756

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each  

cash flow and then add them together

Year Nominal     Present Value

120000  18, 518

24000034,293

36000047,630

TOTAL            100,441

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police

borrow money from the government then pay the government back 5k