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? |
Next Visit question map
Question26of30Total26 of 30
Prev
year | cash flows | discount @ 9% | discount @17% | discount 27% | pv at 9% | pv @17% | pv@27% |
1 | 750 | 0.9174311927 | 0.8547008547 | 0.7874015748 | 688.0733945 | 641.025641 | 590.5511811 |
2 | 1010 | 0.8416799933 | 0.7841292245 | 0.7223867659 | 850.0967932 | 791.9705167 | 729.6106335 |
3 | 1260 | 0.7721834801 | 0.7193846096 | 0.6627401522 | 972.9511849 | 906.4246081 | 835.0525917 |
4 | 1190 | 0.7084252111 | 0.6599858804 | 0.6080184882 | 843.0260012 | 785.3831977 | 723.542001 |
pv of cashflows | 3354.147374 | 3124.803964 | 2878.756407 |
pv of cash flows @ 9% = 3354
pv of cash flows @17%= 3124
pv of cash flows @ 27%= 2879
Get Answers For Free
Most questions answered within 1 hours.