Question

uestions and Problems: Present Value and Multiple Cash Flows: Cooronggooba Outback supplier has identified an investment project with the following cash flows. If the discount rate is 8.5%, what is the present value of these cash flows. What the present value at 16.7% and 24% discount rate? LO 5.1 Year Cash Flow $1037 762 1425 1737 4 . Future Value and Multiple Cash Flows, Nymboida Paint Ltd had identified an investment project with the following cash flows. If the discount rate is 7.5%, what is the future value of these cash flows in Year 4? what the present value at 12% and 23% discount rate? LO 5.1 est I NM Cash Flovw Year 2 4 $1343 1547 1880 2456

Answer 1

Computation of Present Value :- Present Present Present Cashflows$ PVF @8.50% 0.9217 0.8495 0.7829 0.7216 Present Value PVF @24% 0.8065 0.6504 0.5245 0.4230 Year PVF @16.70% 0.8569 0.7343 0.6292 0.5392 Value S Value S Value S 1,037 762 1,425 1,737 955.76 647.28 1,115.64 1,253.37 3,972.06 888.60 559.52 896.61 936.52 3,281.28 836.29 495.58 747.39 734.71 2,813.97 Present value at 8.5% is $ 3,972.06, at 16.70% is $ 3,281.25, at 24% is $ 2,813.97. Computation of Future Value :- Present Present Present Cashflows $ FVF @7.50% 1.2423 1.1556 1.0750 1.0000 Future Value Year FVF @12.0% FVF @23% 1.8609 1.5129 1.2300 1.0000 Value S Value S Value S 1,037 762 1,425 1,737 1,288.26 880.59 1,531.88 1,737.00 5,437.72 1.4049 1.2544 1.1200 1.0000 1,456.91 955.85 1,596.00 1,737.00 5,745.76 1,929.72 1,152.83 1,752.75 1,737.00 6,572.30 Future value at 7.50% is $ 5,437.72/., at 12% it is $ 5,745.76 and at 23% it is $ 6,572.30/.