Eulis Co. has identified an investment project with the following cash flows.

Year Cash Flow
1 $1,190
2 1,090
3 1,540
4 1,900

(a) If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
(b) What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
(c) What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Respuesta :

Answer:

(a) present value ( 10%) 4437

(b) present value ( 18%) 3709

(c) present value ( 24%) 3280

Explanation:

Cash flow is attached.

We can use excel to get the present value.  Also we can discount the 4 values to this moment,  and add them.  

If we have a bigger rate of discount ,  the present value will be smaller.  

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