McCann Co. has identified an investment project with the following cash flows.
Year
Cash flow($)
1
530
2
690
3
875
4
1,090
a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.32.16.)
b. What is the present value at 18 percent?
c. What is the present value at 24 percent?
McCann Co. has identified an investment project with the following cash flows.
| Year | Cash flow($) |
| 1 | 530 |
| 2 | 690 |
| 3 | 875 |
| 4 | 1,090 |
a. 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.)
b. What is the present value at 18 percent?
c. What is the present value at 24 percent?
Related questions
5.
| Toadies, Inc., has identified an investment project with the following cash flows. |
| Year | Cash Flow | ||||||||||||||
| 1 | $ | 1,575 | |||||||||||||
| 2 | 1,695 | ||||||||||||||
| 3 | 1,780 | ||||||||||||||
| 4 | 1,830 | ||||||||||||||
| |||||||||||||||
6.
| You want to buy a new sports coupe for $88,500, and the finance office at the dealership has quoted you a 7.0 percent APR loan for 72 months to buy the car. |
| What will your monthly payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Monthly payment | $ |
| What is the effective annual rate on this loan? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual rate | % |
7.
| You |
| 1. You want to be a millionaire when you retire in 35 years. |
| How much do you have to save each month if you can earn an 11.5 percent annual return? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Savings per month | $ |
| How much do you have to save each month if you wait 15 years before you begin your deposits? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Savings per month | $ |
| How much do you have to save each month if you wait 25 years before you begin your deposits? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Savings per month | $ |
2.
| Toadies, Inc., has identified an investment project with the following cash flows. |
| Year | Cash Flow | |||||
| 1 | $ | 1,575 | ||||
| 2 | 1,695 | |||||
| 3 | 1,780 | |||||
| 4 | 1,830 | |||||
| If the discount rate is 7 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Future value | $ |
| If the discount rate is 12 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Future value | $ |
| If the discount rate is 23 percent, what is the future value of the cash flows in year 4? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Future value | $ |
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