Estimate the present value of the cash flows

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1. ROFL Corporation expects to earn 379,000 at the end of the second year and projects a growth in earnings of 6.15 percent per year. If k is 7.95 percent, what is the present value of the earnings if the company will be liquidated after twenty years from now?

A) 5331135.24
B) 5332135.24
C) 5333134.24
D) 5334135.24
E) None of the above

2. QKL Co. plans a new project that will generate 187,000 of cash flow at the end of each year for 8 years and additionally 108,000 at the end of the project. If hte continuoysly compounded rate of interest is 4%, estimate the present value of the cash flows.

A) 1197567.12
B) 1271061.87
C) 1333242.98
D) 1358677.35
E) None of the above

Reference no: EM13969804

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