Question
In: Finance
Looking Good Co. has identified an investment project with the following cash flows. Year 1 $1000,...
Looking Good Co. has identified an investment project with the following cash flows. Year 1 $1000, Year 2 $200, Year 3 $800 and Year 4 $1500. If the discount rate is 12%, what is the present value of these cashflows?
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Expert Solution
Ans $ 2575.00
| Year | Project Cash Flows (i) | DF@ 12% | DF@ 12% (ii) | PV of Project ( (i) * (ii) ) |
| 1 | 1000 | 1/((1+12%)^1) | 0.893 | 892.86 |
| 2 | 200 | 1/((1+12%)^2) | 0.797 | 159.44 |
| 3 | 800 | 1/((1+12%)^3) | 0.712 | 569.42 |
| 4 | 1500 | 1/((1+12%)^4) | 0.636 | 953.28 |
| PV | 2,575.00 | |||
jeff jeffy answered 1 hour agoRelated Solutions
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