Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,330 1,300 2 3 1,610 1,970 a. If the discount rate is 12 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the present value at 15 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the present value at 21 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Present value at 12 percent b. Present value at 15 percent c. Present value at 21 percent $ 4,621.79

Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,330 1,300 2 3 1,610 1,970 a. If the discount rate is 12 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the present value at 15 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the present value at 21 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Present value at 12 percent b. Present value at 15 percent c. Present value at 21 percent $ 4,621.79

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Mendez Company has identified an investment project with the following cash flows.
Cash Flow
$ 1,330
1,300
Year
1
2
3
4
1,610
1,970
a. If the discount rate is 12 percent, what is the present value of these cash flows?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the present value at 15 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
C. What is the present value at 21 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
a. Present value at 12 percent
b. Present value at 15 percent
c. Present value at 21 percent
$
4,621.79

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