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
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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
Transcribed Image Text: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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