If the appropriate discount rate for the following cash flows is 9 percent compounded quarterly, what is
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If the appropriate discount rate for the following cash flows is 9 percent compounded quarterly, what is the present value of the cash flows?
Year ....................... Cash Flow
1 .............................. $ 815
2 ................................. 990
3 ..................................... 0
4 ............................... 1520
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...
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The time line is The cash flows are annual and the compounding period is quarterly so we ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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