Compute what is the present value of the cash flows

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Reference no: EM132602117

Year           Cash flow

1               $530

2              $690

3                $875

4              $1,090

Question 1. Present Value and Multiple Cash Flows, McCann Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent?

Question 2. Present Value and Multiple Cash Flows, Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?

Reference no: EM132602117

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