Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the present value of the following future cash flows, rounding all calculations to the nearest dollar: 11. 12. 13. (Click the icon to

image

Calculate the present value of the following future cash flows, rounding all calculations to the nearest dollar: 11. 12. 13. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) $5,000received in threeyears with interest of 10% $5,000received in each of the following threeyears with interest of 10% Payments of $2,000 $3,000 and $4,000received in years 12and 3respectively, with interest of 7% 11. Calculate the present value of $5,000 received in three years with interest of 10%. (Enter any factor amounts to three decimal places, X.XXX.) Future value 5000 x Present value factor .751 = Present value = 3755 12. Calculate the present value of $5,000 received in each of the following three years with interest of 10%. (Enter any factor amounts to three decimal places, X.XXX.) Amount of each cash inflow x Annuity present value factor = Present value of an annuity 5000 2.487 = 12435 13. Calculate the present value for payments of $2,000, $3,000, and $4,000 received in years 1, 2 and 3, respectively, with interest of 7%. (Enter any factor amounts to three decimal places, X.XXX.) Future value Year 1 Year 2 Year 3 Total X x X X Present value factor II I II II Present value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

1st canadian edition

978-0133400694

More Books

Students also viewed these Accounting questions

Question

What approach(es) to psychotherapy do you prefer?

Answered: 1 week ago