Question
Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $800 2 1,030 3 1,230 4 1,160 Required: (a)
| Seaborn Co. has identified an investment project with the following cash flows. |
| Year | Cash Flow |
| 1 | $800 |
| 2 | 1,030 |
| 3 | 1,230 |
| 4 | 1,160 |
| Required: | |
| (a) | If the discount rate is 12 percent, what is the present value of these cash flows? |
| A. 3,148.09 B. 4,220.00 C. 3,525.86 D. 3,078.51 E. 3,220.19 | |
| (b) | What is the present value at 17 percent? |
| A. 2,823.20 B. 4,220.00 C. 2,764.63 D. 3,303.14 E. 3,606.83 |
| (c) | What is the present value at 27 percent? |
| A. 2,939.93 B. 2,314.90 C. 4,220.00 D. 2,272.31 E. 2,358.81 |
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Financial Management Theory And Practice
Authors: Prasanna Chandra
11th Edition
9355322208, 978-9355322203
