Question: Please show how values in formulas are used to compute final answers: Wainright Co. has identified an investment project with the following cash flows. If
Please show how values in formulas are used to compute final answers:


Wainright Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent? 10% Discount rate 18% Discount rate 24% Discount rate Year Cash flow 720 1 $ 930 2 1,190 1,275 3 4 Complete the following analysis. Do not hard code values in your answers. Value today at 10% An investment offers $6,100 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? Payment per year #of years Required rate of return #of years #of years 6,100 15 6% 40 75 Complete the following analysis. Do not hard code values in your calculations. Your answers should be positive. Value today with 15 years payments Value today with 40 years payments Value today with 75 years payments Value today of perpetuity
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