(solution) Microsoft Word – Question for Cash Flow Case.docx Question for

(solution) Microsoft Word – Question for Cash Flow Case.docx Question for

Microsoft Word – Question for Cash Flow Case.docx

Question for Cash Flow Case

Calculate the present value 

  1. Four years of continuous study
  2. You begin the study in Jan 1
  3. Tuition fee for each year is $40,000, paid out semiannually at June 30 and Dec 31 of each year
  4. Other expenses are estimated to be $18,000 per year, paid out monthly at the end of each month.
  5. You receive $5,000 of scholarship in the June 30 of the second year, and another $10,000 of scholarship in the Dec 31 of the third year
  6. Interest rate is 5% per year
  7. Calculate the present value of all the education cost. ( use formula, or show your work in Excel)