Homework: EXTRA CREDIT Chapter 12 Save Score: 0 of 1 pt 1 of 6 (3 complete) HW Score: 19%, 1.9 of 10 pts S12-9 (similar to) Question Help O b. Use the Present Value of $1 table to determine the present value of $1 received one year from now. Assume a 16% interest rate. Use the same table to find the present value of $1 received two years from now. Continue this process for a total of five years. (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) What is the total present value of the cash flows received over the five-year period? Could you characterize this strearn of cash flows as annuity? Why or why not? Use the Present Value of Annuity of $1 table to determine the present value of the same stream of cash flows. Compare your results to your answer to Part A Explain your findings. d. a. What is the total present value of the cash flows received over the five-year period? (Round all amounts to three decimal places.) Year Present value Year 1 Year 2 Year 3 Year 4 Year 5 Total present value ent value ve of $1 re Reference x s received over to ys as an annuity? determine the pr ctor table. eived over 16% 0.862 0.743 0.641 0.552 0.476 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 Period 14 0.870 0.758 0.661 0.577 0.442 0.340 0.263 0.205 0.160 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 Period 200.820 0.673 0.554 0.377 0.312 0.215 0.149 0.104 0.073 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.505 0.456 0.051 0.024 0.012 0.003 0.037 0.026 0.016 0.010 0.007 0.004 0.001 0.001 neck Ansy Print Done Clear All alue srece - $1 re Reference Is as a deterr able. 10% 12% 20% 0.833 over 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 1.528 2.106 2.589 2.991 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 Period 7 6.728 6.4726.230 6.002 5.786 5.582 5.206 4.8684.564 Period 8 7.652 7.325 | 7.0206.733 6.463 6.210 5.747 5.335 4.968 Period 9 8.566 8.162 7.786 7.435 7.108 6.8026.247 5.759 5.328 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 4.833 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 7.105 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Ansy Print Done Done Clear All