If the discount rate is 9 percent, what is the present value of these cash flows

Question

If the discount rate is 9 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))

Explanation / Answer

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

Net Present Value = $910/1.11 + $910/1.11^2 + $910/1.11^3 + $910/1.11^4 = $4,183.79

at 20%

Net Present Value = $910/1.2 + $910/1.2^2 + $910/1.2^3 + $910/1.2^4 = $3,420.56

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