Monday, 18 May 2015

Highlight Inc. is considering an investment project with the following cash flows:

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Highlight Inc. is considering an investment project with the following cash flows:
YEAR Cash Flow
1 $300
2 $400
3 $600
4 $900
If the discount rate is 10% , calculate the present value of these cash flows
What will be the present value if the discount rate is changed to 15%
SHOW CALCULATIONS AND WHAT NUMBERS GO INTO THE FORMULA.
For Both Problems, show calculations including intermediate calculations.

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