If the appropriate discount rate for the following cash flows is 11.7 percent per year, what is the present value of the cash flows?

Year	Cash Flow
1	$21,600
2	$25,900
3	$38,700
4	$16,200

Group of answer choices

$71,407.19
$74,221.80
$78,270.77
$80,407.16
$81,121.03

Expert Solution

Present value=Cash flows*Present value of discounting factor(rate%,time period)

=21600/1.117+25900/1.117^2+38700/1.117^3+16200/1.117^4

which is equal to

=$78270.77(Approx)

jeff jeffy answered 2 years ago

If the appropriate discount rate for the following cash flows is 13 percent, what is the...

If the appropriate discount rate for the following cash flows is 13 percent, what is the net present value of these cash flows assuming the initial cost is $700? Should you go through with this investment? YEAR CASH FLOW 0- $ -700 1- 100 2- 200 3- 300 4- 400

What is the present value of the following cash flows at a discount rate of 6%?...

What is the present value of the following cash flows at a discount rate of 6%? Years 1 – 5 $10,000 Years 6 – 10 $12,000 Years 11 – 20 $15,000 A. $109,896 B. $119,157 C. $141,544 D. $129,639 If a professor currently earns $80,000 per year and expects annual salary increases of 3%, approximately how long will the professor have to work before his/her annual salary reaches $500,000 per year? A. 62 years B. 49 years C. 101 years...

If the discount rate is 12%, what is the present value of the following cash flows:...

If the discount rate is 12%, what is the present value of the following cash flows: Year Cash Flow 1 $10,000 2 $11,000 3 $12,000 4 $13,000 5 $14,000 6-15 $15,000 each year a. $144,618 b. $90, 537 c. $127,923 d. $127,197

The appropriate discount rate for the following cash flows is 16 percent compounded quarterly. Year Cash...

The appropriate discount rate for the following cash flows is 16 percent compounded quarterly. Year Cash Flow 1 $900 2 500 3 0 4 1,200 Required: What is the present value of the cash flows? A) $1,739.71 B) $1,810.19 C) $1,775.21 D) $1,810.72 E) $278.95

What is the present value of $1,700 per year, at a discount rate of 10 percent,...

What is the present value of $1,700 per year, at a discount rate of 10 percent, if the first payment is received 4 years from now and the last payment is received 21 years from now? Multiple Choice $2,625.04 $10,475.13 $14,042.40 $10,265.63 $10,245.41

What is the present value of $1,200 per year, at a discount rate of 8 percent,...

What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now?

What is the present value of a perpetual stream of cash flows that pays $1000 at the end of year one and the annual cash flows grows at a rate of 4% per year indefinitely, if the appropriate discount rate is 8%?

(Present value on a growing perpetuity). What is the present value of a perpetual stream of cash flows that pays $1000 at the end of year one and the annual cash flows grows at a rate of 4% per year indefinitely, if the appropriate discount rate is 8%? What if the appropriate discount rate is 6%?a). If the appropriate discount rate is 8%, the present value of the growing perpetuity is? $ (round to the nearest cent)b). If the appropriate...

7. What is present value of perpetuity of $100 per year if appropriate discount rate is...

7. What is present value of perpetuity of $100 per year if appropriate discount rate is 5%? If discount rate is increased to 15% what is the present value of the perpetuity?

5.The appropriate discount rate for the following cash flows is 14 percent compounded quarterly. Year Cash...

5.The appropriate discount rate for the following cash flows is 14 percent compounded quarterly. Year Cash Flow 1 $1,000 2 600 3 0 4 1,300 Required: What is the present value of the cash flows?

What is the net present value of the following cash flows if the relevant discount rate...

What is the net present value of the following cash flows if the relevant discount rate is 9 percent? Year Cash Flow 0 -11,520 1 81 2 650 3 880 4 2300 5 15,800 A) $1,300.54 B) $1,913.12 C) $1,679.22 D) $1,022.87 E) $1,506.54 45) SNR is considering a project with an initial cost of $50,000. The project will produce cash inflows of $10,000 a year for the first two years and $12,000 a year for the following three years....

Question