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What is the combined present value of cash flows if the present value of cash flow X is Rs. 200 and the present value of cash flow Y is Rs. 150?
What is the combined present value of cash flows if the present value of cash flow X is Rs. 200 and the present value of cash flow Y is Rs. 150?
The combined present value of cash flows X and Y is Rs. 350.
Present Value of the combined cash flows is the sum of the individual present value of the different cash flows. Here there are two cash flows. So, the present value of the combined one will be equal to the present value of individual cash flows.
Present Value (combined cash flow) = Present Value (of X) + Present Value (of Y) = 200 + 150 = 350