Help finish the next exercise:A delivery company is evaluating an investment to purchase vehicles. This is expected to generate areturn of $9988.00 one year from now $16,230.00 two years from now and $21,107.00 three yearsfrom now. The required rate of return is 10%. Caloulate the discoonted cash flow.We already know that:• The Present Value of the Cash Flow 2 is $13,413.22 ond,• The Present Value of the Cash Flow 3 is $15,858.00Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate thediscounted cash flow.Note: Write you answer rounded to two decimal places, Type just the number, do not type the S signFor example, if your answer is $25,500.55 type only. 25500.55Answer

The value of money changes over time. For example, the value of $1000 today will not be the same as…

Answered: Find the Present Value of the Cash Flow…

Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate the discounted cash flow

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Help finish the next exercise:
A delivery company is evaluating an investment to purchase vehicles. This is expected to generate a
return of $9988.00 one year from now $16,230.00 two years from now and $21,107.00 three years
from now. The required rate of return is 10%. Caloulate the discoonted cash flow.
We already know that:
• The Present Value of the Cash Flow 2 is $13,413.22 ond,
• The Present Value of the Cash Flow 3 is $15,858.00
Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate the
discounted cash flow.
Note: Write you answer rounded to two decimal places, Type just the number, do not type the S sign
For example, if your answer is $25,500.55 type only. 25500.55
Answer

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