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Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 910 2 1,310 3 1,570 4 1,750 a.
Mendez Company has identified an investment project with the following cash flows. |
Year | Cash Flow |
---|---|
1 | $ 910 |
2 | 1,310 |
3 | 1,570 |
4 | 1,750 |
a. | If the discount rate is 11 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. | What is the present value at 20 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
c. | What is the present value at 30 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
a. Present value at 11%
b. Present value at 20%
c. Present value at 30%
Find the EAR in each of the following cases: (Use 365 days a year. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
\begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Stated Rate (APR) } & Number of Times Compounded & \multicolumn{2}{|c|}{ Effective Rate (EAR) } \\ \hline 9.1 & Quarterly & & % \\ \hline 18.1 & Monthly & & \\ \hline 14.1 & Daily & & \\ \hline 11.1 & Infinite & & \\ \hline \end{tabular}
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