Question

Year Cash Flow 1 $ 1,270 2 1,210 3 1,580 4 1,940 If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

Answer #1

Year | Cash flows | Discount rate 10% | Discount rate 18% | Discount rate 24% | |||

Discount Factor | Discounted cash flows | Discount Factor | Discounted cash flows | Discount Factor | Discounted cash flows | ||

1 | 1270 | 0.909091 | 1154.55 | 0.847458 | 1076.27 | 0.806452 | 1024.19 |

2 | 1210 | 0.826446 | 1000.00 | 0.718184 | 869.00 | 0.650364 | 786.94 |

3 | 1580 | 0.751315 | 1187.08 | 0.608631 | 961.64 | 0.524487 | 828.69 |

4 | 1940 | 0.683013 | 1325.05 | 0.515789 | 1000.63 | 0.422974 | 820.57 |

Present value of cash flows |
4666.67 |
3907.54 |
3460.39 |
||||

Present value at discount rate 10 percent is $4,666.67 | |||||||

Present value at discount rate 18 percent is $3,907.54 | |||||||

Present value at discount rate 24 percent is $3,460.39 | |||||||

Present
value factor =1/(1+r)^{n} |

Consider the following cash flows:
Year
Cash Flow
0
–$
34,000
1
15,100
2
16,600
3
12,500
a.
What is the NPV at a discount rate of zero percent? (Do
not round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
b.
What is the NPV at a discount rate of 8 percent? (Do
not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
c.
What is the NPV at a discount...

Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$1070
2
$1300
3
$1520
4
$2260
a.
If the discount rate is 8 percent, what is the future value of
these cash flows in Year 4? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 11 percent, what is the future value of
these cash flows in Year 4? (Do not...

Problem 8-9 Calculating NPV [LO 4]
Consider the following cash flows:
Year
Cash Flow
0
–$
33,000
1
14,400
2
17,300
3
11,800
What is the NPV at a discount rate of zero percent? (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
Net present value
$
What is the NPV at a discount rate of 12 percent? (Do not
round intermediate calculations and round your answer to 2 decimal...

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...

Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$
1,090
2
1,320
3
1,540
4
2,280
a.
If the discount rate is 7 percent, what is the future value of
these cash flows in Year 4?(Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 13 percent, what is the future value of
these cash flows in Year 4? (Do not...

The appropriate discount rate for the following cash flows is 8
percent compounded quarterly. Year Cash Flow 1 $ 900 2 980 3 0 4
1,570 What is the present value of the cash flows? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)

A project has the following cash flows:
Year
Cash Flow
0
$
72,500
1
–51,500
2
–28,000
What is the IRR for this project? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return
%
What is the NPV of this project if the required return is 6
percent? (A negative answer should be indicated by a minus
sign. Do not round intermediate calculations and round your...

A project has the following cash flows:
Year Cash Flow
0 –$ 16,600
1 7,300
2 8,600
3 7,100
What is the NPV at a discount rate of zero percent? (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
What is the NPV at a discount rate of 12 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
What is the NPV at a discount rate...

A project has the following cash flows: Year Cash Flow 0 –$
15,400 1 6,100 2 7,400 3 5,900 What is the NPV at a discount rate
of zero percent? (Do not round intermediate calculations and round
your answer to the nearest whole number, e.g., 32.) NPV $ 4,000
What is the NPV at a discount rate of 8 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.) NPV $ 1,276.06 What is...

Year
Cash Flow
0
–$
18,500
1
10,800
2
9,700
3
6,200
What is the profitability index for the set of cash flows if the
relevant discount rate is 9 percent? (Do not round
intermediate calculations and round your answer to 3 decimal
places, e.g., 32.161.)
Profitability index
What is the profitability index for the set of cash flows if the
relevant discount rate is 14 percent? (Do not round
intermediate calculations and round your answer to...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 16 minutes ago

asked 35 minutes ago

asked 49 minutes ago

asked 56 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago