Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Below is a table for the present value of $1 at compound interest. Year 1 2 3 4 5 Year 1 2 3 Below is
Below is a table for the present value of $1 at compound interest. Year 1 2 3 4 5 Year 1 2 3 Below is a table for the present value of an annuity of $1 at compound interest. 4 5 6% 0.943 0.890 0.840 0.792 0.747 c. $20,352 10% 0.909 0.826 0.751 0.683 0.621 6% 0.943 1.833 2.673 3.465 4.212 10% 0.909 1.736 2.487 3.170 12% 3.791 0.893 0.797 0.712 0.636 0.567 12% 0.893 1.690 2.402 3.037 3.605 Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, what would be the present value of the investment cash inflows, assuming an earnings rate of 12%? O a. $22,190 O b. $21,259 O Below is a table for the present value of $1 at compound interest. Below is a table for the present value of an annuity of $1 at compound interest. Using the tables above, If an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years What would be the present value of the investment cash inflows, assuming an earnings rate of 12% ? a. 522.190 b. $21.259 c. $20.352
Below is a table for the present value of $1 at compound interest. Year 1 2 3 4 5 Year 1 2 3 Below is a table for the present value of an annuity of $1 at compound interest. 4 5 6% 0.943 0.890 0.840 0.792 0.747 c. $20,352 10% 0.909 0.826 0.751 0.683 0.621 6% 0.943 1.833 2.673 3.465 4.212 10% 0.909 1.736 2.487 3.170 12% 3.791 0.893 0.797 0.712 0.636 0.567 12% 0.893 1.690 2.402 3.037 3.605 Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, what would be the present value of the investment cash inflows, assuming an earnings rate of 12%? O a. $22,190 O b. $21,259 O
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started