i Requirements X 1. What is the total present value of the cash flows received over the five-year period? 2. Could you characterize this stream of cash flows as an annuity? Why or why not? 3. Use the Present Value of Ordinary Annuity of $1 table to determine the present value of the same stream of cash flows. Compare your results to your answer to Requirement 1. 4. Explain your findings. Print Done Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 0.990 0.980 0.971 0.962 0.952 0.943 0.980 0.961 0.943 0.925 0.907 0.890 0.971 0.942 0.915 0.889 0.864 0.840 0.961 0.924 0.888 0.855 0.823 0.792 0.951 0.906 0.863 0.822 0.784 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 10% 12% 14% 15% 16% 0.917 0.909 0.893 0.877 0.870 0.862 0.842 0.826 0.797 0.769 0.756 0.743 0.772 0.751 0.712 0.675 0.658 0.641 0.708 0.683 0.636 0.592 0.572 0.552 0.650 0.621 0.567 0.519 0.497 0.476 18% 20% 0.847 0.833 0.718 0.694 0.609 0.579 0.516 0.482 0.437 0.402 Period 6 Period 7 Period 8 Period 9 Period 10 0.942 0.888 0.933 0.871 0.923 0.853 0.914 0.837 0.905 0.820 0.837 0.790 0.746 0.705 0.813 0.760 0.711 0.665 0.789 0.731 0.677 0.627 0.766 0.703 0.645 0.592 0.744 0.676 0.614 0.558 0.666 0.623 0.582 0.544 0.508 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 Period 11 0.896 0.804 Period 12 0.887 0.788 Period 13 0.879 0.773 Period 14 0.870 0.758 Period 15 0.861 0.743 0.722 0.650 0.585 0.701 0.625 0.557 0.681 0.601 0.530 0.661 0.577 0.505 0.642 0.555 0.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 Period 16 Period 17 Period 18 Period 19 Period 20 0.853 0.728 0.623 0.534 0.458 0.394 0.844 0.714 0.605 0.513 0.436 0.371 0.836 0.700 0.587 0.494 0.416 0.350 0.828 0.686 0.570 0.475 0.396 0.331 0.820 0.673 0.554 0.456 0.377 0.312 0.339 0.317 0.296 0.277 0.258 0.292 0.270 0.250 0.232 0.252 0.218 0.163 0.123 0.231 0.198 0.146 0.108 0.212 0.180 0.130 0.095 0.194 0.164 0.116 0.083 0.178 0.149 0.104 0.073 0.107 0.093 0.093 0.080 0.081 0.069 0.070 0.060 0.061 0.051 0.071 0.054 0.060 0.045 0.051 0.038 0.043 0.031 0.037 0.026 0.215 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.242 0.226 0.211 0.197 0.184 0.199 0.184 0.170 0.158 0.146 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 Period 26 0.772 0.598 0.464 0.361 0.281 Period 27 0.764 0.586 0.450 0.347 0.268 Period 28 0.757 0.574 0.437 0.333 0.255 Period 29 0.749 0.563 0.424 0.321 0.243 Period 30 0.742 0.552 0.412 0.308 0.231 0.220 0.207 0.196 0.185 0.174 0.172 0.161 0.150 0.141 0.131 0.135 0.125 0.116 0.107 0.099 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 0.098 0.076 0.047 0.029 0.023 0.018 0.011 0.007 0.090 0.069 0.042 0.026 0.020 0.016 0.010 0.006 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 0.075 0.057 0.033 0.020 0.015 0.0120.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.001 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 Print Done Use the Present Value of $1 table to determine the present value of $1 received one year from now. Assume a 12% 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. Round to three decimal places. (Click the icon to view Present Value of $1 table.) Read the requirements. Requirement 1. What is the total present value of the cash flows received over the five-year period? Calculate the total present value of $1 received each year. (Round to three decimal places, X.XXX.) Present Value One year from now Two years from now Three years from now Four years from now Five years from now Total present value