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Machine Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 800 2 1,090 3 1,350 4 1,475 a.
| Machine Co. has identified an investment project with the following cash flows. |
| Year | Cash Flow | |||||
| 1 | $ | 800 | ||||
| 2 | 1,090 | |||||
| 3 | 1,350 | |||||
| 4 | 1,475 | |||||
| a. | If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | If the discount rate is 17 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| c. | If the discount rate is 25 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
