c. What is the present value at 30 percent? Present value at 30 percent McCann Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 800 23 1,020 4 1,220 1,130 a. If the discount rate is 8 percent, what is the present value of these cash flows? Present value at 8 percent b. What is the present value at 17 percent? Present value at 17 percent

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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c. What is the present value at 30 percent?
Present value at 30 percent
Transcribed Image Text:c. What is the present value at 30 percent? Present value at 30 percent
McCann Company has identified an investment project with the following cash flows.
Year
Cash Flow
1
$ 800
23
1,020
4
1,220
1,130
a. If the discount rate is 8 percent, what is the present value of these cash flows?
Present value at 8 percent
b. What is the present value at 17 percent?
Present value at 17 percent
Transcribed Image Text:McCann Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 800 23 1,020 4 1,220 1,130 a. If the discount rate is 8 percent, what is the present value of these cash flows? Present value at 8 percent b. What is the present value at 17 percent? Present value at 17 percent
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