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