Question: Problem 6-1 Present Value and Multiple Cash Flows (LO1] McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1
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Problem 6-1 Present Value and Multiple Cash Flows (LO1] McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 800 2. 1,090 3 1,350 4 1,475 a. If the discount rate is 7 percent, what is the present value of these cash flows? not round intermediate calculations and round your answer to 2 decimal pla e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% Problem 6-2 Present Value and Multiple Cash Flows (LO 1] Investment X offers to pay you $4,600 per year for 9 years, whereas Investment Y offers to pay you $6,700 per year for 5 years. If the discount rate is 4 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present value Investment Investment y If the discount rate is 14 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present value Investment Investment y
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