It is the end of 2024. You plan to complete a Ph.D. in 5 years. Your favorite uncle has promised to help you with your school expenses by giving you the following amounts for Christmas:
Year 2025 2026 2027 2028 2029
Cash flow 1,000 1,600 1,800 2,000 2,200
Your uncle is fairly wealthy and very reliable. You currently have $10,000 in a savings account paying an annual interest rate of 11%.
Create an Excel spreadsheet showing the years and cash flows as in the table above, then add a row that shows the number of years from now and another row that shows the present valueofeach cash flow. What is the sum of present values?
