Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four yearswith no residual value. The cash inflows are as shown below:Year 1234$120,000235,000140,00098,000The present value of $1:10%0.90911%0.9010.8120.751 0.73112 0.8263OA. between 9% and 10%OB. between 12% and 13%OC. less than 10%OD. more than 13%12%0.8930.7970.71213%0.8850.7830.69314%0.8770.7690.675(...

Year Cash flows 0 $ -4,50,000.00 1 $ 1,20,000.00 2 $…

Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below: Year 1 2 3 4 The present value of $1: 10% A 1 $120,000 235,000 140,000 98,000 23 11% 0.909 0.901 0.826 0.812 0.751 0.731 between 9% and 10% 12% 0.893 0.797 0.712 13% 0.885 0.783 0.693 14% 0.877 0.769 0.675

Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below: Year 1 2 3 4 The present value of $1: 10% A 1 $120,000 235,000 140,000 98,000 23 11% 0.909 0.901 0.826 0.812 0.751 0.731 between 9% and 10% 12% 0.893 0.797 0.712 13% 0.885 0.783 0.693 14% 0.877 0.769 0.675

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

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