Flora Company has recorded the following cash flows at the end of each year for a project.

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Flora Company has recorded the following cash flows at the end of each year for a project. If the discount rate of Flora Company is 11%, how much is the present value of the project?

Year 1 2 3 4 5 Cash Flow $794,633 542,149 836,200 716,080 520,354

Related Book For answer-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Posted Date: Jan 22, 2024 06:45 AM

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Flora Company has recorded the following cash flows at the end of each year for a project.

Question:

Year 1 2 3 4 5 Cash Flow $794,633 542,149 836,200 716,080 520,354 Year 1 2 3 4 5 Cash Flow $794,633 542,149 836,200 716,080 520,354

Expert Answer:

SOLUTION To calculate the present value of the project we can use the formula for present value of a ... View the full answer

Intermediate Accounting Reporting and Analysis

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