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Present Value and Multiple Cash Flows ?Machine Co. has identified an investment project with the following cash flows. If the discount rate is 5 percent,
Present Value and Multiple Cash Flows?Machine Co. has identified an investment project with the following cash flows. If the discount rate is 5 percent, what is the present value of these cash flows? What is the present value at 13 percent? At 18 percent?
Discount Rate | 5% | 13% | 18% |
Year 1: | $585 | $585 | $585 |
Year 2: | $815 | $815 | $815 |
Year 3: | $1,630 | $1,630 | $1,630 |
Year 4: | $2,140 | $2,140 | $2,140 |
Present Value @ 5%, 13%, and 18% = |
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