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You Are Considering a Project with the Following Cash Flows

question 53

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You are considering a project with the following cash flows:  Year 1  Year 2  Year 3 £5,600£9,000£2,000\begin{array} { | l | l | l | } \hline \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\hline £ 5,600 & £ 9,000 & £ 2,000 \\\hline\end{array}
What is the present value of these cash flows, given an 11% discount rate?


Definitions:

Scienter

The knowledge of wrongdoing or fraudulent intent in the commission of a fraudulent act.

Negligent Performance

The failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Actual Knowledge

Awareness of a fact or circumstance based on firsthand experience or explicit information; not based on hearsay.

Illegal Payment

A transaction involving money or value that is made in violation of the law or regulatory rules.

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