Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

you are considering a project with the cash flows given below. calculate the present value of the future cash flows of the project. discount rate 25%

Sagot :

Answer:

the present value of the future cash flows is $846.57

Explanation:

The computation of the present value of the future cash flows is shown below:

The Present value of inflows is

= Cash inflows × Present value of discounting factor (rate%,time period)

= $100 ÷ 1.25 + $200 ÷ 1.25^2 + $300 ÷ 1.25^3 + $400 ÷ 1.25^4 + $500 ÷ 1.25^5 + $600 ÷ 1.25^6

= $846.5664

Hence, the present value of the future cash flows is $846.57

View image andromache
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.