Question

1. Using a discount rate of 17.1 percent, compute the present value of the following cash...

1. Using a discount rate of 17.1 percent, compute the present value of the following cash flows to the nearest dollar:

Year

Cash Flow

1

$9,123

2

$5,465

3

$17,659

4

$17,643

5

$6,454

0 0
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Answer #1

Ans $ 35088

Year Project Cash Flows (i) DF@ 17.1% DF@ 17.1% (ii) PV of Project ( (i) * (ii) )
1 9123 1/((1+17.1%)^1) 0.853971                                     7,791
2 5465 1/((1+17.1%)^2) 0.729266                                     3,985
3 17659 1/((1+17.1%)^3) 0.622772                                   10,998
4 17643 1/((1+17.1%)^4) 0.531829                                     9,383
5 6454 1/((1+17.1%)^5) 0.454167                                     2,931
PV                                   35,088
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