If the appropriate discount rate for the following cash flows is 7.13 percent per year, what is

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If the appropriate discount rate for the following cash flows is 7.13 percent per year, what is the present value of the cash flows?

Year            Cash Flow

1 ......................$1,400

2 ....................... 1,900

3 ....................... 3,400

4 ....................... 4,300

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Related Book For  answer-question

Essentials of Corporate Finance

ISBN: 978-1259277214

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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