Present Value of Uneven Cash Flows

Imagine you are analyzing an investment project that will yield the following cash flows over a five-year period:

• Year 1: $1,000
• Year 2: $1,500
• Year 3: $2,000
• Year 4: $2,500
• Year 5: $3,000

You want to determine the present value of these cash flows given a discount rate of 10%. The formula for the present value of uneven cash flows is:

$$PV = rac{C_1}{(1+r)^1} + rac{C_2}{(1+r)^2} + rac{C_3}{(1+r)^3} + rac{C_4}{(1+r)^4} + rac{C_5}{(1+r)^5}$$

Where $PV$ is the present value, $C_i$ are the cash flows in each year, and $r$ is the discount rate.

What is the present value of these cash flows?