a. b. Use the Present Value of $1 table to determine the present value of $1 received one year from now. Assume a 14% interest rate. Use the same table to find the present value of $1 received two years from now. Continue this process for a total of five years. (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) c. What is the total present value of the cash flows received over the five-year period? Could you characterize this stream of cash flows as an annuity? Why or why not? Use the Present Value of Annuity of $1 table to determine the present value of the same stream of cash flows. Compare your results to your answe to Part A Explain your findings d. - X Reference a. What is the total present value of the cash flows received over the five-year period? (Round all amounts to three decimal places.) Year Present value - Year 1 Reference Year 2 Year 3 Year 4 Year 5 Total present value Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.9412.8842.8292.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.1703.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.2123.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 87.652 7.020 733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 10 Period 10.368 9.7879.253 8.760 8.306 7.8877.139 6.495 5.938 5.453 5.029 4.656 4.327 11 Period 11.255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.194 5.660 5.1974.793 4.439 12 Period 12.134 11.34810.6359.986 9.394 8.853 7.904 7.1036.424 5.842 5.342 4.910 4.533 112 13 Period 13.004 12.10611.29610.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 14 Period 13.865 12.849 11.93811.11810.380 9.7128.559 7.606 6.811 6.142 5.575 5.092 4.675 15 Period 18.046 16.35114.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 20 Period 22.023 19.52317.41315.622 14.09412.783 10.6759.077 7.843 6.873 6.097 5.467 4.948 25 Period 25.80822.39619.60017.29215.372 13.765 11.258 9.4278.055 7.003 6.1775.517 4.979 30 Period 32.835 27.35523.11519.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 Inn Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.794 0.751 0.712 0.675 0.6410.609 0.579 Period 40.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 70.933 0.8710.813 0.760 0.7110.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 80.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 90.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.1910.162 10 Period 0.896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 11 Period 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 12 b Period 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 13 Period 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 14 Period 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 15 Period 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 20 Period 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 25 Period 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.0120.007 0.004 130 Period 0.672 0.453 0.307 0.208 0.1420.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 40 Print Done