Question
In: Finance
McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1...
|
McCann Co. has identified an investment project with the following cash flows. |
| Year | Cash Flow |
| 1 | $950 |
| 2 | 1,050 |
| 3 | 1,260 |
| 4 | 1,140 |
| a. |
If the discount rate is 9 percent, what is the present value of these cash flows? |
| b. |
What is the present value at 18 percent? |
| c. | What is the present value at 29 percent? |
Solutions
Expert Solution
Ans a) $ 3535.88
b) $ 2914.05
c) $ 2366.02
| Year | Project Cash Flows (i) | DF@ 9% (ii) | PV of Project A ( (i) * (ii) ) | DF@ 18% (iii) | PV of Project A ( (i) * (iii) ) | DF@ 19% (iv) | PV of Project A ( (i) * (iv) ) | |
| 1 | 950 | 0.917 | 871.56 | 0.847 | 805.08 | 0.775 | 736.43 | |
| 2 | 1050 | 0.842 | 883.76 | 0.718 | 754.09 | 0.601 | 630.97 | |
| 3 | 1260 | 0.772 | 972.95 | 0.609 | 766.87 | 0.466 | 586.95 | |
| 4 | 1140 | 0.708 | 807.60 | 0.516 | 588.00 | 0.361 | 411.67 | |
| NPV | 3,535.88 | NPV | 2,914.05 | NPV | 2,366.02 | |||
jeff jeffy answered 1 year agoRelated Solutions
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If the discount rate is 11 percent, what is the present value of
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Rooster Co. has identified an investment project with the following cash flows. Year Cash Flow 1...
Rooster Co. has identified an investment project with the
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1
$
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1,090
3
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Requirement 1:
If the discount rate is 10 percent, what is the present value of
these cash flows? (Enter rounded answer as
directed, but do not use rounded numbers in intermediate
calculations. Round your answer to 2 decimal
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Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1...
Seaborn Co. has identified an investment project with the
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Year
Cash Flow
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2
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Required:
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If the discount rate is 10 percent, what is the present value of
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What is the present value at 16 percent?
(c)
What is the present value at 26 percent?
Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1...
Seaborn Co. has identified an investment project with the
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Cash Flow
1
$900
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(Click to
select)4,430.003,450.312,865.183,754.232,923.99
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If the discount rate is 11 percent, what is the present value of
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intermediate calculations and round your answer to 2 decimal
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