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 11 months agoRelated Solutions
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
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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
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Year Cash Flow
1 $950
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a.
If the discount rate is 10 percent, what is the present value of
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What is the present value at 17 percent?
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If the discount rate is 9 percent, what is the present value of
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What is the present value at 26 percent?
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
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4
1,160
a.
If the discount rate is 11 percent, what is the present value of
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b.
What is the present value at 20 percent?
c.
What is the present value at 27 percent?
Please be specific and provide formulas
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
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a. If the discount rate is 12 percent, what is the present value of
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Consider the following two mutually exclusive projects: Year
Cash Flow (A) Cash Flow (B) 0 –$272,703 –$15,035 1 27,800 4,583 2
52,000 8,185 3 58,000 13,305 4 389,000 9,509 Whichever project...
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
following cash flows.
Year
Cash Flow
1
$
1,190
2
1,090
3
1,540
4
1,900
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
places (e.g., 32.16).)
Present value
$
Requirement 2:
What is the present value at 18 percent?
(Enter rounded...
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
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?
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
following cash flows.
Year
Cash Flow
1
$900
2
1,100
3
1,270
4
1,160
Required:
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If the discount rate is 11 percent, what is the present value of
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(Click to
select)3,769.934,430.003,396.343,321.653,473.74
(b)
What is the present value at 18 percent?
(Click to
select)4,430.003,450.312,865.183,754.232,923.99
(c)
What is the
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(Click to
select)2,369.194,430.002,327.402,286.823,025.63
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$
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If the discount rate is 9 percent, what is the present value of
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Present value
$
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Fox Co. has identified an investment project with the following cash flows. Year Cash Flow 1...
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$
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1,560
4
1,920
a.
If the discount rate is 11 percent, what is the present value of
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and round your answer to 2 decimal places, e.g.,
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b.
What is the present value at 16 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)...
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