Rooster Co has identified an investment project with the following cash flows Year Cash Flow 1 $ 1,010 2 820 3 1,450 4 1,810 Requirement If the discount rate is 12 percent, what is the present value of these cash flows What is the present value at 15 What is the present value at 21 ...

Calculate the present value ...

Rooster Co. has identified an investment project with the following cash flows. Year ________Cash Flow 1 .....................

Question:

Rooster Co. has identified an investment project with the following cash flows.
Year ________Cash Flow
1 ..................... $ 1,010
2 .......................... 820
3 ........................ 1,450
4 ........................ 1,810
Requirement:
If the is 12 percent, what is the present value of these cash flows? What is the present value at 15%? What is the present value at 21%?
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...