Interest rate = 8%

1st year earnings = 10,000

2nd year earnings = 25,000

3rd year earnings = 48,000

4th year earnings = 75,000

Find the present value of each earnings you will get

Present values of 1st earning = A/(1+I)^n

= 10000/(1+.08)

= 9259.259

Present values of 2nd earning = A/(1+I)^n

= 25000/(1+.08)^2

= 25000/ 1.1664

= 21433.471

Present values of 3rd earning = A/(1+I)^n

= 48000/(1+.08)^3

= 48000/ 1.259712

=38103.948

Present values of 4th earning = A/(1+I)^n

= 75000/(1+.08)^4

= 75000/1.36048896

= 55127.239

Total Present value = Present values of 1st earning+Present values of 2nd earning+Present values of 3rd earning+Present values of 4th earning

= 9259.259 + 21433.471+ 38103.948 + 55127.239

Present Value = 123923.917 >>>Answer

1st year earnings = 10,000

2nd year earnings = 25,000

3rd year earnings = 48,000

4th year earnings = 75,000

Find the present value of each earnings you will get

Present values of 1st earning = A/(1+I)^n

= 10000/(1+.08)

= 9259.259

Present values of 2nd earning = A/(1+I)^n

= 25000/(1+.08)^2

= 25000/ 1.1664

= 21433.471

Present values of 3rd earning = A/(1+I)^n

= 48000/(1+.08)^3

= 48000/ 1.259712

=38103.948

Present values of 4th earning = A/(1+I)^n

= 75000/(1+.08)^4

= 75000/1.36048896

= 55127.239

Total Present value = Present values of 1st earning+Present values of 2nd earning+Present values of 3rd earning+Present values of 4th earning

= 9259.259 + 21433.471+ 38103.948 + 55127.239

Present Value = 123923.917 >>>Answer