Answer:
the present value of cash inflows is $38,608.50
Explanation:
The computation of the amount that should be invested today is shown below:
The present value of cash inflows is
= Yield at the end of each of the next ten years × Present value of annuity factor(5%,10)
= $5,000 × 7.7217
= $38,608.50
hence, the present value of cash inflows is $38,608.50
We simply applied the above formula and the same is to be considered
