. Advertisement .
..3..
. Advertisement .
..4..
......... ADVERTISEMENT ......... ..8..
Huggins Co. has identified an investment project with the following cash flows.
If the discount rate is 8 percent, what is the present value of these cash flows?
What is the present value at 18 percent?
What is the present value at 24 percent?
♦ Relevant knowledge
Present value: If someone would be willing to pay the present value of $90 in exchange for $100 in a year, then we would say that the value at present of $100 in a single year is $90 in the present. Present value generally less that the value for a cash flow.
1 Answer