A B C D E F G H JK L M N P R S T U PRESENT VALUE OF $1.00 Per. 4% 6% 1 0.9615 0.9434 2 0.9246 3 0.889 4 0.8548 0.7921 5 0.8219 0.7473 8% 0.9259 0.89 0.8573 0.8396 0.7938 0.735 0.6806 9% 0.9174 0.6209 0.5935 10% 11% 0.9091 0.9009 0.8929 0.87 0.8417 0.8264 0.8116 0.7972 0.76 0.7722 0.7513 0.7312 0.7118 0.66 0.7084 0.683 0.6587 0.6499 12% 15% 1 2 3 0.6355 0.57 4 0.5674 0.5 5 PRESENT VALUE OF A SERIES OF $1.00 CASH FLOWS Per. 4% 6% 8% 9% 0.9615 0.9434 0.9259 0.9174 0.9091 0.8696 1.8861 1.8334 1.7833 1.7591 1.7355 1.7125 1.6901 1.6257 2.7751 2.673 2.5771 2.5313 2.4869 2.4437 2.4018 2.2832 3.6299 3.4651 3.3121 3.2397 3.1699 3.1024 3.0373 2.855 4.4518 4.2124 3.9927 3.8897 3.7908 3.6959 3.6048 3.3522 10% 11% 12% 15% 0.9009 0.8929 0 1 10000 |PV=??? Disc't Rate=10% 2 10000 3 10000 7. Tim is considering an investment that generates cash flows of $10,000 in year 1, $10,000 in year 2 and $10,000 in year 3, as shown in the cash flow sketch above. How much should Tim pay for this series of cash flows today, assuming that he demands a rate of return of 10%? Round your answer to the nearest whole dollar. Your answer: $ Result 0 PV=??? 0 1 2500 2 2800 3 1000 Disc't Rate=6% 8. Rose is considering an investment that generates cash flows of $2,500 in year 1, $2,800 in year 2 and $1,000 in year 3, as shown in the cash flow sketch above. How much should Rose pay for this series of cash flows today, assuming that she demands a rate of return of 6%? Round your answer to the nearest whole dollar. Your answer: $ Result 0 0 1 PV=??? 1000 2 2000 3 3000 Disc't Rate=6% 9. Lana is considering an investment that generates cash flows of $1,000 in year 1, $2,000 in year 2 and $3,000 in year 3, as shown in the cash flow sketch above. How much should Lana pay for this series of cash flows today, assuming that she demands a rate of return of 6%? Round your answer to the nearest whole dollar. Your answer: $ Result 0 10. Elizabeth is considering an investment that will pay her $1,000 in one year, and another $1,000 two years from now. How much should Elizabeth pay for this investment in order to earn a rate of return of 6%? Use this formula: PV=FV times 1/(1+.06) + FV times 1/(1.06) Round your answer to the nearest whole dollar. Your answer: $ Result 0 0