Question
1) David Davis borrowed some money from his friend and promised to repay him $1,230, $1,320, $1,490, $1,600, and $1,600 over the next five years.
1) David Davis borrowed some money from his friend and promised to repay him $1,230, $1,320, $1,490, $1,600, and $1,600 over the next five years. If the friend normally discounts investment cash flows at 8.0 percent annually, how much did David borrow? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
Present value $ |
2) Gary King has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,610, $8,330, $9,090, $12,150, and $11,130. If the appropriate discount rate is 7.625 percent, what is the cost in todays dollars of the equipment Gary purchased today? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
Present value $ |
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