Question
In: Finance
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 1,010 3 1,340 4 1,170 Required: (a) If the discount rate is 11 percent, what is the present value of these cash flows? (b) What is the present value at 17 percent? (c) What is the present value at 26 percent?
Solutions
Expert Solution
Solution :
(a) The present value of the cash flows at a discount rate of 11 percent = $ 3,290.97
(b) The present value of the cash flows at a discount rate of 17 percent = $ 2,882.61
(c) The present value of the cash flows at a discount rate of 26 percent = $ 2,405.17
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
jeff jeffy answered 10 months agoRelated Solutions
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:
(a)
If the discount rate is 11 percent, what is the present value of
these cash flows?
(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
present value at 30 percent?
(Click to
select)2,369.194,430.002,327.402,286.823,025.63
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
$950
2
1,060
3
1,340
4
1,200
(a) If the discount rate is 11 percent, what is the present
value of these cash flows?
(b)
What is the present value at 19 percent?
(c)
What is the present value at 29 percent?
Seaborn Co. has identified an investment project with the following cash flows.
Seaborn Co. has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$800
2
1,000
3
1,330
4
1,160
Required:
(a)
If the discount rate is 10 percent, what is the present value of
these cash flows?
(Click to
select) 3,679.79 3,268.96 3,424.40 4,290.00 3,345.26
(b)
What is the present value at 18 percent?
(Click to
select) 2,746.13 3,308.65 4,290.00 3,635.58 2,803.94
(c)
What is the present value at 28 percent?
(Click to
select) 2,345.12 2,259.53 ...
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 $750 2 1,080 3 1,270 4
1,120
a. If the discount rate is 11 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 28 percent?
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...
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 1,000
3 1,220
4 1,170
a.
If the discount rate is 10 percent, what is the present value of
these cash flows?
b.
What is the present value at 17 percent?
c. What is the present value at 29 percent?
Eulis Co. has identified an investment project with the following cash flows. Year Cash Flow 1...
Eulis Co. has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$
1,290
2
1,240
3
1,590
4
1,950
If the discount rate is 9 percent, what is the present value of
these cash flows? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g.,
32.16.)
Present value
$
What is the present value at 17 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g.,...
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
$800
2
1,040
3
1,270
4
1,150
a.
If the discount rate is 9 percent, what is the present value of
these cash flows?
b.
What is the present value at 17 percent?
c.
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
following cash flows.
Year
Cash Flow
1
$900
2
1,040
3
1,330
4
1,160
a.
If the discount rate is 11 percent, what is the present value of
these cash flows?
b.
What is the present value at 20 percent?
c.
What is the present value at 27 percent?
Please be specific and provide formulas
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