1.

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

Year				Cash Flow
	1			$	780
	2				1,050
	3				1,310
	4				1,425

If the discount rate is 8 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))

Present value

$

What is the present value at 17 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Present value

$

What is the present value at 25 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Present value

$

2. Investment X offers to pay you $4,300 per year for nine years, whereas Investment Y offers to pay you $6,400 per year for six years.

Calculate the present value for Investment X and Y if the discount rate is 4 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Present value
Investment X	$
Investment Y	$

Calculate the present value for Investment X and Y if the discount rate is 14 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Present value
Investment X	$
Investment Y	$