Question

# Year Cash Flow 1 \$ 1,270 2 1,210 3 1,580 4 1,940 If the discount rate...

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 \$

 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