Problem
Huggins Co. has identified an investment project with the following cash flow.
|
Year
|
Cash Flow
|
|
1
|
$680
|
|
2
|
$810
|
|
3
|
$940
|
|
4
|
$1,150
|
i. If the discount rate is 10%, what is the present value of these cash flows?
ii. What is the present value at 18%?
iii. What is the present value at 24%?