Question
P511 Present values For each of the cases shown in the following table, calculate the present value of the cash flow, discounting at the rate
P511 Present valuesFor each of the cases shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted.
| Case | Single cash flow | Discount rate | End of period (years) |
|---|---|---|---|
| A | $7,000 | 12% | 4 |
| B | 28,000 | 8 | 20 |
| C | 10,000 | 14 | 12 |
| D | 150,000 | 11 | 6 |
| E | 45,000 | 20 | 8 |
| Problem 5-11: | ||||||
| PRESENT VALUE OF A SINGLE AMOUNT: |
|
|
|
| ||
|
|
| A | B | C | D | E |
| Future Value |
| 7,000.00 | 28,000.00 | 10,000.00 | 150,000.00 | 45,000.00 |
| Interest Rate Per Year | 12% | 8% | 14% | 11% | 20% | |
| Number of Years |
| 4 | 20 | 12 | 6 | 8 |
| Present Value |
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Finance For Freelancers Financial Intelligence
Authors: Andrew Holmes
1st Edition
1408101165, 978-1408101162
