Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. seaborn co. has identified an investment project w

Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $950            2 1,060            3 1,340            4 1,200            (a) If the discount...

Free

80.2K

Verified Solution

Question

Finance

Seaborn Co. has identified an investment project with thefollowing cash flows.

YearCash Flow
1$950          
21,060          
31,340          
41,200          

(a) If the discount rate is 11 percent, what is the presentvalue of these cash flows?

(b)

What is the present value at 19 percent?


(c)What is the present value at 29 percent?

Answer & Explanation Solved by verified expert
3.9 Ratings (370 Votes)

a)
Statement showing Cash flows
Particulars Time PVf 11% Amount PV
Cash flows                    1.00                0.9009                950.00                855.86
Cash flows                    2.00                0.8116            1,060.00                860.32
Cash flows                    3.00                0.7312            1,340.00                979.80
Cash flows                    4.00                0.6587            1,200.00                790.48
PV of Cash flows            3,486.45
b)
Statement showing Cash flows
Particulars Time PVf 19% Amount PV
Cash flows                    1.00                0.8403                950.00                798.32
Cash flows                    2.00                0.7062            1,060.00                748.53
Cash flows                    3.00                0.5934            1,340.00                795.18
Cash flows                    4.00                0.4987            1,200.00                598.40
PV of Cash flows            2,940.43
c)
Statement showing Cash flows
Particulars Time PVf 29% Amount PV
Cash flows                    1.00                0.7752                950.00                736.43
Cash flows                    2.00                0.6009            1,060.00                636.98
Cash flows                    3.00                0.4658            1,340.00                624.22
Cash flows                    4.00                0.3611            1,200.00                433.33
PV of Cash flows            2,430.97

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Seaborn Co. has identified an investment project with thefollowing cash flows.YearCash Flow1$950          21,060          31,340          41,200          (a) If the discount rate is 11 percent, what is the presentvalue of these cash flows?(b)What is the present value at 19 percent?(c)What is the present value at 29 percent?

Other questions asked by students

Geometry
1.2K views

The manager of a coffee shop has one type of coffee that sells for $6...

Finance
1.2K views

why does a firm WACC is higher then their industry WACC and why does a firm...

Geometry
1.2K views

What is the surface area of this triangular pyramid 3 mm 3 mm 26 mm...

Statistics
1.2K views

of employed adults in the United States held multiple jobs A random sample of 61...

Algebra
1.2K views

Find the probability that event A or B takes place A B 4 13 3...

Accounting
1.2K views

Jack Blake operates a car parts store on Woodlake Drive called Parts Galore. He is...

Accounting
1.2K views

Ms. A owns 70 percent of the shares of A Ltd. and 10 percent of...

Accounting
1.2K views

La seccin de patrimonio de los accionistas del estado de situacin financiera utiliza el monto...

Accounting
1.2K views

The adjusted trlal balance for Tybalt Construction on December 31 of the current year follows....

Accounting
1.2K views

Please give me the tight answer. Decker Company has five products in its...

Accounting
1.2K views

What process is used to assign costs in an ABC system? Provide numerical example. I...

Finance
1.2K views

A whole-life insurance on (85) pays a benefit of 1000 at the end of the...