Palmer Incorporated is considering a new project. The initial cash outflows are $1000. The Company beleives the project will yield cash inflows of $122 in year 1, $122 in year 2, $305 in year 3, and $671 in year 4. Assuming an annual discount rate of 4%, calcualte the present value of future cash flows for the project.
Palmer Incorporated is considering a new project. The initial cash outflows are $1000. The Company beleives the project will yield cash inflows of $122 in year 1, $122 in year 2, $305 in year 3, and $671 in year 4. Assuming an annual discount rate of 4%, calcualte the present value of future cash flows for the project.
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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Transcribed Image Text:Palmer Incorporated is considering a new project. The initial cash outflows are $1000. The Company
beleives the project will yield cash inflows of $122 in year 1, $122 in year 2, $305 in year 3, and $671 in
year 4. Assuming an annual discount rate of 4%, calcualte the present value of future cash flows for the
project.
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