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Wainright Co. has identified an investment project with the following cash flows. Year   Cash Flow 1       ...

Wainright Co. has identified an investment project with the following cash flows.

Year   Cash Flow

1        $780

2    $1075

3        $1267

4        $1398

If the discount rate is 20.9 percent, what is the present value of these cash flows?

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Answer #1

Calculate present value :

Year Cash flow PVF @20.9% Present value
1 780 0.82713 645
2 1075 0.68414 735
3 1267 0.56588 717
4 1398 0.46805 654
Total 2751

Present value of these cash flows = $2751

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