Seaborn Co. has identified an investment project with the following cash flows.
ID: 2648957 • Letter: S
Question
Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, the present value of these cash flows is $______. If the discount rate is 18 percent, the present value of these cash flows is $_____. If the discount rate is 24 percent, the present value of these cash flows is $______.
Year Cash Flow 1 $ 950 2 1,040 3 1,130 4 1,075Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, the present value of these cash flows is $______. If the discount rate is 18 percent, the present value of these cash flows is $_____. If the discount rate is 24 percent, the present value of these cash flows is $______.
Explanation / Answer
Year CF Discounted rates Present Value of Cash flow No Cash flow 10% 18% 24% 10% 18% 24% 1 950 0.9091 0.8475 0.8065 863.65 805.13 766.18 2 1040 0.8264 0.7182 0.6504 859.46 746.93 676.42 3 1130 0.7513 0.6086 0.5245 848.97 687.72 592.69 4 1075 0.683 0.5158 0.423 734.23 554.49 454.73 3,306.30 2,794.26 2,490.00 Note:The present value of cash flow is derived by multiplying yearly cash flow with corresponding discounted rates. If discount rate is 10%, the present value of cash flow is 3306.30$ If discount rate is 18%, the present value of cash flow is 2794.26$ If discount rate is 24%, the present value of cash flow is 2490$
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