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

ID: 2694120 • Letter: W

Question

Wainright Co. has identified an investment project with the following cash flows. Year:1,2,3,4 Cashflows in order with the years: $830, $1150, $1410, $ 1550. A. If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) B. What is the present value at 16 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) C. What is the present value at 25 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) I think im supposed to use the NPV (Net Present Value) function on my financial calculator but im usure on how to put it in.

Explanation / Answer

PV of cashflow= $830/1.08+(1150/1.08^2)+(1410/1.08^3)+(1550/1.08^4)= $4013.058