a. Use the Present Value of $1 table to determine the present value of $1 received one year from now. Assume a 12% 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.) 2(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 answer to Part A. Explain your findings. 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 Total present value b. Could you characterize this stream of cash flows as an annuity? Why, or why not? This stream of cash flows (1) - fit the definition of an annuity because the cash flows (2) - c. 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 answer to Part A. (Round your answer to three decimal places.) The present value of an annuity of $1 received each year for five years, at 12% per year is $ Compare your results to your answer to Part A. The sum of the present values in part "a" (3) the present value calculated with the annuity table. d. Explain your findings. This exercise shows how Annuity PV factors (4) - of the PV factors found in the Present Value of $1 tables. Use the Present Value of $1 table to determine the present value of $1 received one year from now. Assume a 12% 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. 3) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) a. What is the total present value of the cash flows received over the five-year period? b. Could you characterize this stream of cash flows as an annuity? Why or why not? c. 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 answer to Part A. d. Explain your findings. 1: Reference Periods 1% 0.990 0.980 0.971 0.961 0.951 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.837 0.630 0.766 0.744 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.705 0.711 0.583 0.677 0.645 0.592 0.500 0.558 0.463 0.386 0.429 0.497 0.368 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 | 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 0.308 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 0.712 0.675 0.641 0.592 0.552 0.519 0.476 0.456 0.410 0.400 0.354 0.351 0.305 0.263 0.270 0.227 0.237 0.195 0.208 0.168 0.182 0.145 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 0.162 Oo 0.397 0.773 0.112 0.093 0.191 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 0.065 0.758 0.743 0.673 0.610 0.552 0.453 0.820 0.780 0.742 0.672 0.026 0.642 0.554 0.478 0.412 0.307 0.456 0.375 0.308 0.208 0.010 0.004 0.001 2: Reference Periods 1% 0.990 1.970 2% 0.980 1.942 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 14% 0.877 1.647 Present Value of Annuity of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 1.833 1.783 1.736 2.577 2.487 3.312 3.170 3.993 3.791 4.623 4.355 12% 0.893 1.690 2.402 16% 0.862 1.605 2246 2.798 18% 0.847 1.566 2.174 2.690 20% 0.833 1.528 2.106 2.589 3.037 7.722 8.306 8.863 6.710 7.139 7.536 6.145 6.495 9.394 7.904 8.530 | 8.111 9.7879.253 8.760 11.255 10.575 9.954 9.385 12.134 11.348 10.635 9.986 13.004 12.106 11.296 10.563 13.865 12.849 11.938 11.118 18.046 16.351 14.877 13.590 22.023 19.523 17.413 25.808 22.396 19.600 17.292 32.835 27.355 23.115 19.793 9.999 10.380 5.468 7.360 7.887 8.384 8.853 9.295 9.712 11.470 12.783 13.765 15.046 7.367 5.008 5.092 7.606 5.575 8.244 8.559 9.818 10.675 11.258 11.925 8.514 5461 14.094 15.372 17.159 9.077 9.427 8.055 9.779 | 8.244 5.929 6.097 6.177 6.233 7.003 7.105 5.517 5.548 4.997