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please answer the question a,b,c,d CISES, PROBLEMS, AND CASES TO ACCOMPANY FINANCIAL ACCOUNTING We begin with a set of questions about items 1, 2, and
please answer the question a,b,c,d
CISES, PROBLEMS, AND CASES TO ACCOMPANY FINANCIAL ACCOUNTING We begin with a set of questions about items 1, 2, and 3. The interest rate applicable to all nine items, unless specified otherwise, is 6% annually. In providing your answers, answer to the nearest $0.01 and expect some minor rounding errors. a. What is the present value of item 1? b. What is the present value of item 2? c. What is the present value of item 3? d. Suppose you had item 1 and invested its balance in an investment that pays 6% per period. Complete the following table: Initial Investment Value at Time 1 Value at Time 3 Value at Time 2 $83.96 C6-3 RFS's Present Values The following table gives the net cash inflows at each point in time associated with nine alternatives. For example, item 1 pays $83.96 immediately. Item 9 pays nothing immedi- ately, $100 one year hence, $50 two years hence, and $200 three years hence. Time 2 $83.96 $ 50.00 6.00 $40.00 6.00 20.00 35.00 55.00 100.00 25.00 30.00 55.00 50.00 $100.00 1.42 106.00 119.10 30.00 25.00 55.00 200.00 Step by Step Solution
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