Different cash

flow.

Given the cash inflow in the following table,

LOADING...

, what is the present value of this cash flow at

5%,

13%,

and

24%

discount rates?

What is the present value of this cash flow at

5%

discount rate?

(Round to the nearest cent.)What is the present value of this cash flow at

13%

discount rate?

(Round to the nearest cent.)What is the present value of this cash flow at

24%

discount rate?

Present

value.

A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only

4

annual payments of

$2,700,

this beautiful 1998 Honda Civic can be yours." If you can borrow money at

8%,

what is the price of this car? Assume the payment is made at the end of each year.

If you can borrow money at

8%,

what is the price of this car?

Present

value.

A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only

4

annual payments of

$2,700,

this beautiful 1998 Honda Civic can be yours." If you can borrow money at

8%,

what is the price of this car? Assume the payment is made at the end of each year.

If you can borrow money at

8%,

what is the price of this car?