Problem 5-1 Present Value and Multiple Cash Flows [LO 1] Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,010 2 820 4 1,450 1,810 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 D
Problem 5-1 Present Value and Multiple Cash Flows [LO 1] Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,010 2 820 4 1,450 1,810 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 D
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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![Problem 5-1 Present Value and Multiple Cash Flows [LO 1]
Mendez Company has identified an investment project with the following cash flows.
Year
Cash Flow
1
$ 1,010
2
820
4
1,450
1,810
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
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff99967c1-62b6-4632-ad7c-aca3d9c27909%2F28f31f57-764a-40c5-8cdc-8f4d86792088%2Fbvtlyul_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 5-1 Present Value and Multiple Cash Flows [LO 1]
Mendez Company has identified an investment project with the following cash flows.
Year
Cash Flow
1
$ 1,010
2
820
4
1,450
1,810
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
D
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