The appropriate discount rate for the following cash flows is 15 percent compoundedquarterly.Year1234Cash Flow$700600What is the present value of the cash flows?о1,100Multiple ChoiceO$1,628.22$251.20O $1,694.67

Compound = Quarterly = 4Cash Flow for Year 1 = cf1 = $700Cash Flow for Year 2 = cf2 = $600Cash Flow…

Answered: The appropriate discount rate for the…

The appropriate discount rate for the following cash flows is 15 percent compounded quarterly. Year 1 2 3 4 Cash Flow $700 600 0 1,100 What is the present value of the cash flows?

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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Question

The appropriate discount rate for the following cash flows is 15 percent compounded
quarterly.
Year
1
2
3
4
Cash Flow
$700
600
What is the present value of the cash flows?
о
1,100
Multiple Choice
O
$1,628.22
$251.20
O $1,694.67

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