Question: A firm is valuing a project that is expected to produce the following cash flows over thenext eight years:YearCash Flow15,00026,50037,00048,00058,00068,00078,00089,500a. What does the term discounting

A firm is valuing a project that is expected to produce the following cash flows over thenext eight years:YearCash Flow15,00026,50037,00048,00058,00068,00078,00089,500a. What does the term discounting mean in finance? What is a discount rate?b. What is the present value of these cash flows at a discount rate of 8%?c. What is the present value of these cash flows at a discount rate of 12%? What is therelationship between present values and interest rates?

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