Question

Fox Co. has identified an investment project with the following cash flows. Year WN - Cash Flow $ 1,210 1,120 1,550 1,910 4 a. If the discount rate is 9 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 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value at 9 percent Present value at 17 percent c. Present value at 23 percent

Answer 1

present value at 17% rate present value at 23% rate cash flows present value at 9% rate pv @17% pv @ 9% year pv @ 23% $1,210 $1,110 $943 $1,034 $984 1 0.9174 0.8547 0.8130 $1,120 $818 $740 0.8417 2 0.7305 0.6610 $833 $1,550 $1,910 $1,197 $968 $1,019 0.7722 0.6244 0.5374 $1,353 $834 4 0.7084 0.5337 0.4369 $4,602.75 $3,839.41 $3,391.46 Present value $4,602.75 Present value @ 9% = $3,839.41 Present value @ 17% = $3,391.46 Present value @ 23% =