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Huggins Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of

Huggins Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these flows? What is the present value at 18 percent? At 24 percent?

Year Cash Flow

1 $ 680

2 810

3 940

4 1,150

Present Value at 10% =

[$680/ (1+.10)^1 + $810/ (1 +.10)^2 + $940/ (1+.10)^3 + 1,150/(1+.10)^4 ]=

[680/1.1 + 810/1.21 + 940/1.331 + 1,150/1.4641] =

$618.18 + 669.42 + 706.23 + 785.46 (do these numbers need to be rounded? ) Like on the calculator it says 706.2359128, so shouldn't the answer be 706.24 since 5 is bigger than 3? should I round?

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