McCann Co. has identified an investment project with the following cash flows.
Year Cash Flow
1 $ 780
2 1,050
3 1,310
4 1,425
a. If the discount rate is 8 percent, what is the present value of these cash flows? (Do
not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
b. What is the present value at 17 percent? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the present value at 25 percent? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
a. Present value at 8%
b. Present value at 17%
c. Present value at 25%