What is the present value of the following set of cash flows, discounted at 15.5% per year? Year 1 CF 3 4 $95 - $95 $190 $190 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 15.5% per year? Year 1 CF 3 4 $95 - $95 $190 $190 The present value of the cash flow stream is $ (Round to the nearest cent.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 19E

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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 15.5% per year?
Year
1
CF
3
4
$95
- $95
$190
$190
The present value of the cash flow stream is $
(Round to the nearest cent.)

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