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Mendez Company has identified an investment project with the following cash flows. Year Cash Flow $ 470. 610 735 920 4 a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 10 percent b. Present value at 18 percent c. Present value at 24 percent 123

Mendez Company has identified an investment project with the following cash flows. Year Cash Flow $ 470. 610 735 920 4 a. If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 10 percent b. Present value at 18 percent c. Present value at 24 percent 123

Essentials Of Investments
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
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### Investment Project Cash Flow Analysis Mendez Company has identified an investment project with the following cash flows: | Year | Cash Flow | |------|-----------| | 1 | $470 | | 2 | $610 | | 3 | $735 | | 4 | $920 | #### Questions: **a. If the discount rate is 10 percent, what is the present value of these cash flows?** *Instruction: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.* **b. What is the present value at 18 percent?** *Instruction: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.* **c. What is the present value at 24 percent?** *Instruction: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.* --- Below the listed questions, there is an answer box table: - **a. Present value at 10 percent:** [ ] - **b. Present value at 18 percent:** [ ] - **c. Present value at 24 percent:** [ ] This table allows for the entry of the calculated present value for each respective discount rate.
Transcribed Image Text:### Investment Project Cash Flow Analysis Mendez Company has identified an investment project with the following cash flows: | Year | Cash Flow | |------|-----------| | 1 | $470 | | 2 | $610 | | 3 | $735 | | 4 | $920 | #### Questions: **a. If the discount rate is 10 percent, what is the present value of these cash flows?** *Instruction: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.* **b. What is the present value at 18 percent?** *Instruction: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.* **c. What is the present value at 24 percent?** *Instruction: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.* --- Below the listed questions, there is an answer box table: - **a. Present value at 10 percent:** [ ] - **b. Present value at 18 percent:** [ ] - **c. Present value at 24 percent:** [ ] This table allows for the entry of the calculated present value for each respective discount rate.
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