Lester's just signed a contract that will provide the firm with annual cash inflows of €28,000, €35,000, and €42,000 over the next three years with the first payment of €28,000 occuring one year from now.

Question

-> What is this contract worth today at a
discount rate of 7,25%?

Answer 1

Present Value (PV)= €28,000:(1+0,0725)
+€35,000:(1+0,0725)^2
+€42,000:(1+0,0725)^3
The Contract today is worth: €90,580.55.

Answer 2

Lisa's calculations should say:

Present value
= 28,000÷(1+0.0725)^1+35,000÷(1+0.0725)^2+42,000÷(1+0.0725)^3
or
= 28,000/(1+0.0725)^1+35,000/(1+0.0725)^2+42,000/(1+0.0725)^3
or
= 28,000(1+0.0725)^-1+35,000(1+0.0725)^-2+42,000(1+0.0725)^-3
= 90,580.55

The standard sign for division online is / if you cannot type the ÷
I have never seen : used as a division sign.