Question

Lerb Assignment i Save McCann Co. has identified an investment project with the following cash flows. Year >WN- Cash Flow $ 780 1,050 1,310 1,425 oints Skipped eBook a. If the discount rate is 8 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.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Hint Print a. Present value at 8% b. Present value at 17% c. Present value at 25% References < Prev 15 of 15 !!! Next

Answer 1

rate positively ..

Ans a)		i	ii	iii=i*ii
	Year	Cash flow	PVIF @ 8%	Present value
	1	780	0.925925926	722.22
	2	1050	0.85733882	900.21
	3	1310	0.793832241	1,039.92
	4	1425	0.735029853	1,047.42
				3,709.77
	Ans =			3,709.77
Ans b)		i	ii	iii=i*ii
	Year	Cash flow	PVIF @ 17%	Present value
	1	780	0.854700855	666.67
	2	1050	0.730513551	767.04
	3	1310	0.624370556	817.93
	4	1425	0.533650048	760.45
				3,012.08
	Ans =			3,012.08
Ans c)		i	ii	iii=i*ii
	Year	Cash flow	PVIF @ 25%	Present value
	1	780	0.80000	624.00
	2	1050	0.64000	672.00
	3	1310	0.51200	670.72
	4	1425	0.40960	583.68
				2,550.40
	Ans =			2,550.40