ATT Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $10,000 at the end of every six months for each of the next four years along with a lump sum payment of $20,000 at the end of the fifth year and a lump sum payment of $15,000 at the end of the sixth year. Assume an interest rate of 10% compounded semi-annually. Calculate the total present value of these payments. Future Value of a Lump-Sum Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 22 23 24 25 60 1.015 1.020 1.025 1.030 1.035 1.040 1.045 1.051 1.061 1.077 1.083 1.088 1.093 1.099 1.104 1.110 1.116 1.121 1.127 1.132 1.348 3% 1.092 1.125 1.159 1.194 1.229 1.266 1.304 1.343 1.425 1.358 1.604 1.652 1.702 1.753 1.806 1.860 1916 1.974 2.033 2.094 5.891 Rate of interest per period in percent 5% 6% 8% 99 10% 129 15% 20% 1.157 1.191 1.259 1.295 1.331 1.404 1.520 1.728 1.215 1.263 1.360 1411 1.464 1.573 1.749 2.073 1.278 1.338 1.469 1538 1.610 1.762 2011 2.488 1.340 1.418 1.586 1.677 1.771 1.973 2.313 2.986 1.407 1.503 1.713 1.828 1.948 2.210 2.660 3.583 1.478 1594 1.851 1.992 2.144 2.476 3.059 4.299 1551 1.689 1.999 2.171 2.357 2.773 3517 5.159 1.629 1.790 2.159 2.367 2.594 3.105 4.045 6.191 1.795 2.012 2518 2.812 3.138 3.896 5.350 8.916 2.078 2.396 3.172 3.642 4.177 5473 8.137 15.407 2.182 2.540 3.425 3.970 4.595 6.130 9.357 18.488 2.292 2.692 3.700 4.327 5.054 6.866 10.761 22.186 2.406 2.854 3.996 4.717 5.559 7.690 12.375 26.623 2.527 3.025 4.315 5.141 6.115 8.612 14.231 31.948 2.653 3.207 4.661 5.604 6.727 9.616 16.366 38 337 2.786 3.399 5.033 6.108 7.400 10.803 18.821 46.005 2.925 3.603 5436 6.658 8.140 12.100 21.644 55.206 3.071 3.819 5.871 7.257 8.954 13.552 24.891 66.247 3.225 4.048 6.341 7911 9.849 15.178 28.625 79.496 3386 4.291 6.848 8.623 10.834 17.000 32.919 95 396 18.679 32.987 101 257 176.031304 482 897 597 4383.99 56347.5 Present Value of a Lump-Sum Periods 3 4 5 6 7 8 9 10 % 0.985 0.980 0.975 0.970 0.965 0.960 0.956 0.951 0.941 0.927 0.923 0.918 0.914 0.909 3% 0.915 0.888 0.862 0.838 0.813 0.789 0.766 0.744 0.701 0.641 0.623 0.605 0.587 0.570 SE 0.863 0.822 0.783 0.746 0.710 0.676 0.644 0.613 0.556 0.481 0458 0.436 0.415 0.395 Rate of interest per period in percent 8% 99 10% 0.840 0.793 0.772 0.751 0.792 0.735 0.708 0.683 0.747 0.680 0.649 0.621 0.705 0.631 0.596 0.564 0.665 0.583 0.547 0.513 0.627 0540 0.501 0.466 0.592 0.500 0.460 0424 0.558 0.463 0.422 0.385 0.497 0.397 0.356 0.318 0.417 0.315 0.274 0.239 0.393 0.291 0.251 217 0.371 0.270 0.231 0.197 0.350 0.250 0.212 0.179 0330 0.231 0.194 0.163 125 0.712 0.635 0 567 0507 0452 0.403 0.360 0.322 0.257 0.183 0.163 0.145 0.130 0.116 159 0.657 0.571 0.497 0.432 0.375 0.326 0.284 0.247 0.186 0.122 0.106 0.092 0.080 0.070 209 0.578 0.482 0.401 0.334 0.279 0.232 0.193 0.161 0.112 0.064 0.054 0.045 0.037 0.031 12 15 16 17 18 19 Future Value of an Annuity Periods %% 3 3.015 4 4.030 5 5.050 6 6.075 7 7.105 8 8.14 99.1821 10 10.228 12 12.335 15 15.536 16 16.614 17 17.697 18 18.785 19 19.879 20 20.979 21 22.084 22 23.194 23 24.310 24 25.432 25 26.559 60 69.770 Rate of interest per period in percent 3% 5% 6% 8% 9% 10% 12% 15% 20% 3.090 3.152 3.183 3.246 3.278 3.310 3.374 3.472 3.640 4.183 4.310 4.374 4.506 4573 4.641 4.779 4.993 5.368 5.309 5525 5.637 5.867 5.985 6.105 6.353 6.742 7.441 6.468 6.801 6.975 7.336 7.523 7.715 8.115 8.753 9.929 7.662 8.142 8.393 8.925 9.200 9.487 10.089 11.066 12.915 8.892 9.549 9.897 10.636 11.028 11.435 12.299 13.726 16.499 10.159 11.026 11491 12.487 13.021 13.579 14.775 16.785 20.798 11.464 12.580 13.180 14.486 15.193 15.937 17.549 20.303 25.958 14.192 15.917 16.870 18.977 20.140 21.384 24.133 29.001 39.580 18.599 21.578 23.276 27.152 29 360 31.772 37.280 47.580 72.035 20.156 23.657 25.672 30.324 33.003 35.949 42.753 55.717 87.442 21.761 25.840 28.218 33.750 36.973 40.544 48.883 65.075 105.931 23.414 28.150 30.905 37.450 41.301 45.599 55.749 75.836 128.117 25.116 30.539 33.759 41.446 46.018 51.159 63.439 88.211 154.740 26.870 33.065 36.785 45.762 51.160 57.275 72.052 102.444 186.688 28.676 35.719 39992 50.422 56.764 64.002 81.698 118.810 225.026 30.536 38.505 43.392 55.456 62.873 71.402 92.502 137.632 271.031 32.452 41.430 46.995 60.893 69.531 79.543 104.603 159.276 326.237 34 426 44.502 50.815 66.764 76.789 88.497 118.155 184.168 392.484 36.459 47.727 54.864 73.105 84.700 98.347 133.334 212.793 471.981 163.053 353 584 533.128 1253.21 1944.79 3034.82 7471.64 29219.9 281732 Present Value of an Annuity Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 4% 2.970 3.950 4.925 5.896 6.862 7.823 8.779 9.730 11.618 14.416 15.339 16.258 17.172 18.082 3% 2.828 3.717 4.579 5417 6.230 7.019 7.786 8.530 9.954 11.937 12.561 13.166 13.753 14.323 5% 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.721 8.863 10.379 10.837 11.274 11.689 12 ORS Rate of interest per period in percent 6% 8% 9% 10% 2.673 2.577 2.531 2.487 3.465 3.312 3.239 3.170 4.212 3.992 3.889 3.790 4.917 4.623 4485 4.355 5.582 5.206 5033 4.868 6.209 5.746 5.534 5.334 6.801 6.247 5.995 5.759 7.360 6.710 6417 6.145 8.383 7536 7.160 6.813 9.712 8.559 8.060 7.606 10.105 8.851 8.312 7.823 10.477 9.121 8.543 8.021 10.827 9371 8.755 8.201 11.158 9.603 8.950 8.364 12% 2.402 3.037 3.604 4.111 4.563 4.967 5.328 5.650 6.194 6.810 6.974 7.119 7249 7.365 15% 2.283 2.855 3.352 3.784 4.160 4.487 4.771 5.018 5.420 5.847 5.954 6.047 6.128 6.198 20% 2.106 2.588 2.990 3.325 3.604 3.837 4.031 4.193 4.439 4.675 4.729 4.774 4.812 4.843