1.100 3 800 4 600 LOI 28. Discounted Cash Flow Analysis If the appropriate discount rate for the following cash flows is 4.78 percent per year, what is the present value of the cash flows? Year Cash Flow 1 $1,400 2 1.900 3 3.400 4 4,300 ntermediate A e here to search O per ye pay you and your he much will you pay for the policy? Calculating Perpetuity Values In the previous problem, suppose Larry's told you the policy costs $6 At what interest rate would this be a fair deal? Calculating EAR Find the EAR in each of the following cases. Stated Rate (APR) Number of Times Compounded Effective Rate (EX 10.2% Quarterly 18.0 Manthly 13.5 Daily Semiannually 9.5 Calculating APR Find the APR, or stated rate, in each of the following cases. Stated Rate (APR) Number of Times Compounded Effective e G im W earch 199+)