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Calculate the present values of each case using the discount rate provided. Show all your calculations CASE SINGLE CASH FLOW DISCOUNT RATE END PERIOD YEAR
Calculate the present values of each case using the discount rate provided. Show all your calculations
CASE | SINGLE CASH FLOW | DISCOUNT RATE | END PERIOD YEAR | ANSWER |
A | 8000 | 11% | 5 | 1582.59 |
B | 12000 | 8% | 12 | 925.93 |
C | 60000 | 13% | 20 | 266.66 |
D | 48000 | 20% | 7 | 5714.29 |
E | 6000 | 5% | 9 | 934.92 |
A PV = 8000/ (1+0.11)5 B PV = 12000/(1+0.08)*12 C PV=6000/(1+0.13)*20
= 8000/1.011 * 5 = 12000/1.08*12 = 6000/1.13*20
= 8000/5.055 = 12000/12.96 = 6000/22.5
= 1582.59 = 925.93 = 266.66
D PV = 48000/(1+0.20)7 E PV= 6000/(1+0.05)9
= 48000/1.2*7 = 6000/1.05 * 9
= 48000/8.4 = 6000/9.45
= 5714.29 = 634.92
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