What is the present value of the following set of cash flows, discounted at 15.2% per year? Year 1 2 3 4 CF $109 −$109 $200 −$200 The present value of the cash flow stream is $______. (Round to the nearest cent.)

What is the present value of the following set of cash flows, discounted at 15.2% per year? Year 1 2 3 4 CF $109 −$109 $200 −$200 The present value of the cash flow stream is $______. (Round to the nearest cent.)

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 7MC

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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

What is the present value of the following set of cash flows, discounted at

15.2%

per year?

Year	1	2	3	4
CF	$109	−$109	$200	−$200

The present value of the cash flow stream is

$______.

(Round to the nearest cent.)

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