If the discount rate is 8 percent, what is the present value of these cash flows

Question

    

  

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))

  

What is the present value at 18 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

  

What is the present value at 24 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

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

Explanation / Answer

Answer:

In$ In$ Discount factors Discounted cashflows Year Cash Flow 8% 18% 24% 8% 18% 24% 1 730 0.9259 0.8475 0.8065 675.93 618.64 588.71 2 950 0.8573 0.7182 0.6504 814.47 682.28 617.85 3 1,210 0.7938 0.6086 0.5245 960.54 736.44 634.63 4 1,300 0.7350 0.5158 0.4230 955.54 670.53 549.87 Present value = 3406.47 2707.89 2391.05

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