If the appropriate discount rate for the following cash flows is 6.75 percent, what is the present

Question:

If the appropriate discount rate for the following cash flows is 6.75 percent, what is the present value of the cash flows?

Year Cash Flow

1 .....................$1,200

2 ..................... 1,100

3 ..................... 800

4 ..................... 600

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...