Moving Cash Flow. You are scheduled to receive a $460 cash flow in one year, a $760 cash flow in two years, and pay a $360 payment in three years. If interest rates are 11% per year, what is the combined present value of these cash flows? a. $768.02 b. $1,220.00 c. $860.00 d. $1,294.48

Name: moving cash flow you are scheduled to receive a 460 cash flow in one year a 760 cash flow in two years and pay a 360 payment in three years if interest rates are 11 per year what is the comb 46855
Uploaded: 2023-09-06T03:59:32-08:00
Duration: 1 min 15 s
Channel: Supreeta N
Description: moving cash flow you are scheduled to receive a 460 cash flow in one year a 760 cash flow in two years and pay a 360 payment in three years if interest rates are 11 per year what is the comb 46855

          Moving Cash Flow. You are scheduled to receive a $460 cash flow
in one year, a $760 cash flow in two years, and pay a $360 payment
in three years. If interest rates are 11% per year, what is the
combined present value of these cash flows?
a. $768.02  b. $1,220.00 c. $860.00 d. $1,294.48

Added by Chad S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

09/06/2023

Step 1

For the $460 cash flow in one year, we have: PV1 = 460 / (1 + 0.11)^1 = 413.96 For the $760 cash flow in two years, we have: PV2 = 760 / (1 + 0.11)^2 = 602.68 For the $360 payment in three years, we have: PV3 = -360 / (1 + 0.11)^3 = -252.38 (note the Show more…

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Moving Cash Flow. You are scheduled to receive a $460 cash flow in one year, a $760 cash flow in two years, and pay a $360 payment in three years. If interest rates are 11% per year, what is the combined present value of these cash flows? a. $768.02 b. $1,220.00 c. $860.00 d. $1,294.48