Problem 6-28 Discounted Cash Flow Analysis [LO1] The appropriate discount rate for the following cash flows is 768 percent per year. Year Cash Flow 1 $2,540 0 3,980 2,230 What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) 4 Present value 234

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 6-28 Discounted Cash Flow Analysis [LO1]
The appropriate discount rate for the following cash flows is 768 percent per year.
Year Cash Flow
1
$2.540
2
0
3
3.980
4
2,230
What is the present value of the cash flows? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g. 32/16.)
&
Present value
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Problem 6-26 Calculating Annuity Present Values [LO1]
Beginning three months from now, you want to be able to withdraw $2,400 each quarter
from your bank account to cover college expenses over the next three years. If the
account pays 46 percent interest per quarter, how much do you need to have in your
bank account today to meet your expense needs over the next three years? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g..
32.16.)
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