Cully Co. has identified an investment project with the following cash flows. If

Question

Cully Co. has identified an investment project with the following cash flows. If the discount rate is 8 percent, the present value of these cash flows is $ . If the discount rate is 17 percent, the present value of these cash flows is $ . If the discount rate is 27 percent, the present value of these cash flows is $ . (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

Cully Co. has identified an investment project with the following cash flows. If the discount rate is 8 percent, the present value of these cash flows is $ . If the discount rate is 17 percent, the present value of these cash flows is $ . If the discount rate is 27 percent, the present value of these cash flows is $ . (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

Explanation / Answer

npv = (900/1.08)+(1100/1.08^2)+(1250/1.08^3)+(1160/1.08^4) = $3621.33

2)

npv = (900/1.17)+(1100/1.17^2)+(1250/1.17^3)+(1160/1.17^4) = $2972.29

3)

NPV = (900/1.27)+(1100/1.27^2)+(1250/1.27^3)+(1160/1.27^4) = $2446.80

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