a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 CF $10 $20 $30 $40 $50 b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 5 CF $50 $40 $30 $20 $10 c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?
a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 CF $10 $20 $30 $40 $50 b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 5 CF $50 $40 $30 $20 $10 c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![a. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
4
5
CF
$10
$20
$30
$40
$50
b. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
4
CF
$50
$40
$30
$20
$10
c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?
a. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
4
CF
$10
$20
$30
$40
$50
The present value of the cash flow stream is $
(Round to the nearest cent.)
b. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
2
3
4
CF
$50
$40
$30
$20
$10
The present value of the cash flow stream is|. (Round to the nearest cent.)
c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? (Select the best choice below.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96e0847f-4973-4b99-ac1e-7e94417321c7%2F3c31a627-012e-40b5-ac51-9379071d2a1f%2F5415sl_processed.png&w=3840&q=75)
Transcribed Image Text:a. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
4
5
CF
$10
$20
$30
$40
$50
b. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
4
CF
$50
$40
$30
$20
$10
c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?
a. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
4
CF
$10
$20
$30
$40
$50
The present value of the cash flow stream is $
(Round to the nearest cent.)
b. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
2
3
4
CF
$50
$40
$30
$20
$10
The present value of the cash flow stream is|. (Round to the nearest cent.)
c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? (Select the best choice below.)
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