Question

McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $900 2 1,090 3 1,250 4 1,140 a. If the discount rate is 11 percent, what is the present value of these cash flows? b. What is the present value at 17 percent? c. What is the present value at 28 percent?

Answer #1

We discount the cash flows by the interest rate

a) If the discount rate is 11 percent

Present value = 900/(1.11) + 1090/(1.11^2) + 1250/(1.11^3) + 1140/(1.11^4)

Present value = $3360.42

b) If the discount rate is 17 percent

Present value = 900/(1.17) + 1090/(1.17^2) + 1250/(1.17^3) + 1140/(1.17^4)

Present value = $2954.31

c) If the discount rate is 28 percent

Present value = 900/(1.28) + 1090/(1.28^2) + 1250/(1.28^3) + 1140/(1.28^4)

Present value = $2389.14

McCann Co. has identified an investment project with the
following cash flows. Year & Cash Flow YR 1 - $800 YR 2 -
$1,090 YR 3 - $1,340 YR 4 - $1,180
a. If the discount rate is 11 percent, what is the present value
of these cash flows?
b. What is the present value at 19 percent?
c. What is the present value at 28 percent?

McCann Co. has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$750
2
1,010
3
1,260
4
1,190
a.
If the discount rate is 9 percent, what is the present value of
these cash flows?
b.
What is the present value at 17 percent?
c.
What is the present value at 27 percent?
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Question26of30Total26 of 30
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Huggins Co. has identified an investment project with the
following cash flows.
Year Cash Flow
1 $ 820
2 $1,130
3 $1,390
4 $1,525
If the discount rate is 10 percent, what is the present value of
these cash flows?
Present value $ 3765,26 What is the present value at 16
percent?
Present value $ 3279.42 What is the present value at 25
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Present value $ 2715.52
*These are my answers I want to know if I got them...

Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$575
2
975
3
1,075
4
1,400
a.
If the discount rate is 9 percent, what is the future value of
these cash flows in year 4?
b.
What is the future value at a discount rate of 17 percent?
c.
What is the future value at discount rate of 28 percent?

Paradise, Inc., has identified an investment project with the
following cash flows. Year Cash Flow 1 $625 2 $975 3 $1,100 4
$1,450 Required:
(a) If the discount rate is 10 percent, what is the future value
of these cash flows in year 4?
(b) What is the future value at a discount rate of 20
percent?
(c) What is the future value at discount rate of 28 percent?

1. Paradise, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$625
2
950
3
1,125
4
1,400
Required:
(a)
If the discount rate is 10 percent, what is the future value of
these cash flows in year 4?
(b)
What is the future value at a discount rate of 17 percent?
(c)
What is the future value at discount rate of 26 percent?

Stoeller Co. has identified an investment project with the
following cash flows. If the discount rate is 7 percent, what is
the present value of these cash flows? What is the present value at
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Cash Flow
1
$375
2
$822
3
$555
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1)
Rasputin, Inc., has identified an investment project with the
following cash flows. If the discount rate is 8 percent, what is
the future value of these cash flows in Year 4? What is the future
value at a discount rate of 11 percent? At 24 percent?
Year
Cash Flow
1
$ 900
2
1,000
3
1,100
4
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Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$600
2
875
3
1,100
4
1,350
a.
If the discount rate is 11 percent, what is the future value of
these cash flows in year 4?
b.
What is the future value at a discount rate of 20 percent?
c.
What is the future value at discount rate of 30 percent?
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Question27of30Total27...

Rooster Co. has identified an investment project with the
following cash flows. Year Cash Flow 1 $ 970 2 760 3 1,430 4 1,790
Requirement 1: If the discount rate is 9 percent, what is the
present value of these cash flows? (Enter rounded answer as
directed, but do not use rounded numbers in intermediate
calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Present value $ Requirement 2: What is the present value at 17
percent? (Enter rounded...

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