X has installed a machine in his factory with a view to generate higher revenues. Net cash flows due to installing such machinery are as follows: Year 1 - (1250) Year 2 - (1000) Year 3 - 1100 Year 4 - 1450 Year 5 - 1500 What is the present value of these cash flows at a discounting rate of 10%. a. 652.80 b. 715.20 c. 762.80 d. 785.39

Answer rating: 100% (QA)

To calculate the present value of the cash flows we can use the fo... View the full answer