A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a return of $11391.00 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 T0%. 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 $15,838.00 Find the Present Value of the Cash Flow 1 and, uning 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 S sign. For example if your answer is $25,500.55 type only 25500.55

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Help finish the next exercise:
A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a
return of $11391.00 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, uning 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 tihe S sign.
For example, if your anower is $25,500.55 type only 2550.55
Answer
Transcribed Image Text:Help finish the next exercise: A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a return of $11391.00 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, uning 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 tihe S sign. For example, if your anower is $25,500.55 type only 2550.55 Answer
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education