bernard-00438ckom 1510008406234 DAAA062B01SE 4844547543750000 Luke are walking after class between the library and the best pizzeria near campus. They're discussing Dr x's latest financial management lecture, which addressed the concept of present value and the process fo ng it. In anticipation of tomorrow's quiz, they've decided to review their lecture notes and the textbook s and then practice one or two problems. Complete the missing information in the conversation that follows your final answer to all computations to two decimal places. However, if you compute any interest factors as mediate step in your calculations, round them to four decimal places Luke So, what is a present value, and why is it important to be able to calculate it? Lexi According to Dr. Boudreaux, an asset's present or value is the current value of the cash flows that it will pay or receive in the future. Luke Wait Can you give me an example of when it would be appropriate to calculate a present value? Lexi Sure, but it might make more sense for you to identify such a situation. So, tell me in which of the following two scenarios you would use a present value calculation, and then explain why that is so. Scenario 1: You would like to know how much you should place on deposit to have accumulated a certain amount of money by a specific future date. Scenario 2: You would like to know how much a given amount deposited today will grow into by a specific future date. Luke Ummm. I think is the situation that requires the calculation of a present value. and occurs The reason is that the amount to be placed on deposit is both Lexi Very good! So here's your next question: How is the present value of a single amount calculated? ing the formula that is used in the calculation of a future value. To Luke It can be catculated by rearrangi see this Lexi Wait, wait, wait. Could you show me what you mean by witing it down? Here is a sheet of paper, show me how to rearrange the future value formula to solve fora present value. Luke OK, first, let's write down the equation used to calculate a future value (PV) Mu