The appropriate discount rate for the following cash flows is 15 percent compounded quarterly.

Year	Cash Flow
1	$700
2	800
3	0
4	1,300

Required:

What is the present value of the cash flows?

rev: 09_17_2012

	$1,882.77
	$268.27
	$1,956.89
	$1,921.2
	$1,959.62