Assume the appropriate discount rate for the following cash flows is 9.5 percent
ID: 2751141 • Letter: A
Question
Assume the appropriate discount rate for the following cash flows is 9.5 percent.
What is the present value of the cash flows? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Present Value:
Assume the appropriate discount rate for the following cash flows is 9.5 percent.
Required:What is the present value of the cash flows? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Present Value:
Cash Flow Year 2 4 $1,750 1,650 1,350 1,150Explanation / Answer
Year Cashflows (A) PVF@9.5% Present value 1 $ 1,750 0.913 $ 1,598.17 2 $ 1,650 0.834 $ 1,376.12 3 $ 1,350 0.762 $ 1,028.23 4 $ 1,150 0.696 $ 799.91 Present value $ 4,802.43