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

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 29 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)) Year Cash Flow 1 $ 950 2 1,070 3 1,290 4 1,190 I think my answers are wrong so if you could get the right answers and tell me how you did it I would be very thankful.

Explanation / Answer

for r=10% PV = 950/1.1 +1070/(1.1^2)+1290/(1.1^3 +1190/1.1^4 =$3529.91 for r=18% PV = 950/1.18 +1070/(1.18^2)+1290/(1.18^3 +1190/1.18^4 =$2972.46

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