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high and are even called predatory by some. Do you think such high interest loans are ethical? Why or why not? QUESTIONS AND PROBLEMS connect BASIC Questions 1-28) 1. Present Value and Multiple Cash Flows [LO1] McCann Co. has identified an investment project with the following cash flows. If the discount rate is 10 per what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent? Cash Flow Year $ 530 690 875 4 1,090 2. Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? 184 3. Future Value and Multiple Cash Flows [LOI] Fuente, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 pero what is the future value of these cash flows in Year 4? What is the future value at a discount rate of 11 percent? At 24 percent? Cash Flow Year e4 07r 6:38 PM W 6/3/2011 DELL