A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a return of $9988.00 one year from now, $16,230.00 two years from now, and $21,107.00 three years from now. The required rate of return is 10%. Calculate the discounted cash flow. We already know that: • The Present Value of the Cash Flow 2 is $13,413.22 and, • The Present Value of the Cash Flow 3 is $15,858.00 Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate the discounted cash flow. Note: Write you answer rounded to two decimal places. Type just the number, do not type the $ sign. For example, if your answer is $25,500.55 type only: 25500.55

A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a return of $9988.00 one year from now, $16,230.00 two years from now, and $21,107.00 three years from now. The required rate of return is 10%. Calculate the discounted cash flow. We already know that: • The Present Value of the Cash Flow 2 is $13,413.22 and, • The Present Value of the Cash Flow 3 is $15,858.00 Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate the discounted cash flow. Note: Write you answer rounded to two decimal places. Type just the number, do not type the $ sign. For example, if your answer is $25,500.55 type only: 25500.55

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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