McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $800 2 1,030 3 1,340 4 1,110 a If the discount rate is 10 percent, what is the present value of these cash flows? b What is the present value at 18 and 28 percent?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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McCann Co. has identified an investment project with the following cash flows.

 

Year Cash Flow
 1 $800           
 2 1,030           
 3 1,340           
 4 1,110           
 
   
a

If the discount rate is 10 percent, what is the present value of these cash flows?

b What is the present value at 18 and 28 percent?
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