In: Finance
|
Seaborn Co. has identified an investment project with the following cash flows. |
| Year | Cash Flow |
| 1 | $800 |
| 2 | 1,050 |
| 3 | 1,230 |
| 4 | 1,140 |
| Required: | |
| (a) |
If the discount rate is 10 percent, what is the present value of these cash flows? |
| (b) |
What is the present value at 16 percent? |
| (c) | What is the present value at 26 percent? |