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Assume the appropriate discount rate for the following cash flows is 8.8 percent. Year Cash Flow $1,400 1.300 1,000 800 What

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Answer #1

Cash Flows:
Year 1 = $1,400
Year 2 = $1,300
Year 3 = $1,000
Year 4 = $800

Discount Rate = 8.80%

Present Value of Cash Flows = $1,400/1.088 + $1,300/1.088^2 + $1,000/1.088^3 + $800/1.088^4
Present Value of Cash Flows = $3,732.34

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