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The appropriate discount rate for the following cash flows is 7.18 percent per year. Year Cash...

The appropriate discount rate for the following cash flows is 7.18 percent per year. Year Cash Flow 1: $ 2,440, 2: 0, 3: 3,880, 4: 2,130 What is the present value of the cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

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Answer #1

Present value=cash flows*Present value of discounting factor(rate%,time period)

=2440/1.0718+3880/1.0718^3+2130/1.0718^4

which is equal to

=$7041.93(Approx).

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