Use he Present Value or $1 table o determine the present value or $1 received one year from no . Assume an 8% interest rate. Use the same table five years. Round to three decimal places. 1 eceived two years rrom now. Continue this process or a find the present value o tal of (Click the lcon 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 S1 received each year. (Round to three decimal places, x.xxx.) Present Value One year from now Two years from now Three years Four years from now Five from now years from now Total present value Requirement 2. Could you characterize this stream of cash flows as an annuity? Why or why not? The stream of cash flowsan annuity because it is a stream of Requirement 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. Round to three decimal places, Xxxx.) Vcash payments made at time intervals. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) The present value of an annuity of $1 received each year for five years, at 8% per year is $ The sum of the present values in Requirement 1 Requirement 4. Explain your findings. This exercise shows how Annuity PV factors Vthe present value calculated with the Present Value of Ordinary Annuity of S1 table. of the PV factors found in the Present Value of $1 tables. Reference Ponts 1% 2% 1 3% 4% 5% | 6% 7% , 8% | 9% 10% | 12% 14% | 15% | 16% | 18% 1 20% | |0.990 .980|0.971 0.962 a.962|0.943 .905 0.926 .917 0.909 | 0.393 0.277|0.870| 0.862| C.847|0.833 2 11.970 1342| 1.913 1,886 18611.833 1.808| 1.783| 1.759 1.736| 1690 1647|1625| 1.606|1566| 1.528 3 2.911 .8 2.29 2.77 2.T23 2.573 2624 25772531 2.487 2102 2322 2283 2246 2.174 2.106 4 | 3.902 3.80| 3.717 3630 3.546| 3.445 3.387 3.312| 3240 3.17013007 2914|2.855| 2.798| 2.690| 2.589 5 4853 4.713 4.50 442 4.329 4.212 4.100 303 390 3.7913605 3433 3352 3274 3.1272 1 0.900 0S60 09710S62 0352 0430835 0926017 0.83 0.877 0.800.B52 .87 0.833 2 0.980 0.961 0.943 | D.925 0.907 | 0890 0973 | 0857 | 0.842 | 0.226 | 0.797 | 0.769 0.756 | 0.743 0.218 | 0.694 3 | .971 942 0.915 | 0889 0864 | 0840 0816 | 0794 | a772 | 0751 | 0.712 | 0.675 0.658 | 0.841 609 | 0.579 40.961 050 0.888 0855 08230.79 0763 07350.70 06B3 0.630.5 0.52 0.552 0.516 0.482 5 | 0.961 0.908 D31 D.822 0.784| 0747 0713|06B1|0.650|0.621| 0.567| 0.51g 0.497| 0.476 0.437|0.402 6 | 0.942 0.888 08310790 0.746|0705 0665|0630| 0.595|056410.507|0.456 0.432 10.410 0.370|0.335 7 | 0.933 0871 0.8131 D.760 0.711| 0665 0.623|05B3| 0.547| 0.513| 0.452| 0.40C 0.376| 0.354 0.314|0.279 8 |0.923 .863 0.789|0.731 0.677| 0627 0.582|0540| 0.502|0.487| 0.404|0.351 0.327|0.306 0.266|0.213 9 0.914 083 0.766 0703 0645 052 054 0500 0460 0424 03510.30.284 0.283 0.225 0.134 10 0905 0820 0.74067B 0614 0558 0508 0463 042203 0.32 0.270 0.247 0.227 0.19 0.162 11 0.596 080 0.722 0.650 0585 0527 0475 0429 0.3880.350 0.27 0.237 0.215 0.196 0.162 0.135 12 10.887 .788 0.701|0.625 0.567|0497 044410397 | 0.15610.319| 0.257| 0.20 0.1871 0.16 0.1371 0.112 13 0.579 0.773 0681 0601 0530 0469 0415 036 032 2 0.22 0.1 0.1630.145 .116 0.83 14 0.570 0.T58 0561 0.577 0505 0442 038 0340 0299 0.263 0.2050.100.141 0.125 0.099 0.078 15 | .881 .743 0.642 | 0.555 0.481 | 0417 0262 | 031 5 | 0.275 | 0.239 | 0.183 | 0.140 0.123 | 0.10 0.084 0.05 16 0.553 0.728 0.623 0.53 0458 0394 0339 02920.250.218 0.13 0.123 0.10 0.093 0.071 0.054 17 | 0.844 .714 0.605|0.513 0436| 0.371 0317 0270| 0.231 '.1981 0.1461 0.108 0.090| 0.080 0.0610.345 18 | 0.836 700 0.587 | 0494 0416 | 0.350 0296 | 0250 | 0.212 | 0.180 | 0.130 | 0.096 0.081 | 0,0 0.061 | 0.038 19 0.528 0.686 0.570 0.175 0396 0331 020232 019016 0116 O.DE3 0.0TO 0.DEO 0.013 0.31 20 | 0.520 0.673 0.564 | D458 0.377 | 0312 0.258 | 0215 | 0.178 | 0.149 | 0.104 | 0.073 0.061 | 0.051 0.037 | 0.DQ6 21 0.811 0660 0.538 0.439 0359 0294 024201 0.164 0.135 0.083 0.054 0.053 0.044 0.031 0.022 22 | 0.303 0.647 0.522|D422 0.34210278 0.22610184| 0.1501 1231 0.0831 0.056 0.046| 0.03 0.026| 0.018 23 |0.795 .634 0.507|0406 0.326|0262 211|0170| 0.138|0112| 0.074| 0.049 0.040 | 0.033 .022|0.015 24 0.88 0622 0482 0390 0310 0247 01015 012 0.1020.0560.043 0.035 0.028 0.019 0.013 25 0.780 0.610 047B0375 0295 0 233 01B4 018 0.1160.092 0059 03 0.030 0.024 0.0160.010 28 0.772 0.598 0464 0381 0281 0220 0172 013501080.0B40.053 0.033 0.02 0.21 0.014 0.009 27 |0.784 .588 0450|0347 0.268 | 0207 0.16110125| 0.098|0.076| 0.047|0.029 0.023| 0.018 0.011 |.0C7 28 | 0.757 0.574 0.437| 0.333 0.25510195 0.150| 0.116| 0.090|0.010.042| 0.026 0.020| 0,016 0.010 | 0.006 29 0.749 0563 042 0.321 0243 0.185 0141 0107 00B2 0.083 0.0370.0220.017 0.014 0.008 0.005 30 |0.742 .562 0412| 0.308 0.231 | 0.174 0.131|0099|0.075 0.0571 0.033|0.20 0.015 | 0.012 .007|.004 6 5.796 5 54 242 5.06 4 476 4623 4486 365 4 38893784 36 3.4 3.326 T6.728 6.472 6.230 6.002 5.T86 5.582 5.3895.2065.033 468564 4288 4.160 .09 3.812 3.606 8 7.852 .325 70206.733 8483 6.210 5.971 5.7475.535 5.335 4968 4839 4.457 4344 4.083.837 9 8.566 8.1626 743 7.108652 6515 6.247 555 5.75 5328 4946 4772 464.30 4.331 10 9.471 8.983 8.530 8111 7.T22 7.360 702 6.710 6418 6.145 5650 5216 5.0194.8334.192 11 10.368 7 9.2538.367 7499 7.139605 64955938 5453 5234 5029 4.65 4.327 1 11.255 10575 9.954 9.385 8.863 8.384 7913 7.536 7.161 6.814 6.194 5660 5.4215197 4.793 4.439 13 12.13 11.34 10.835 9.988 9.394 8.553 8.358 7.904 7487 7.103 842 5842 5583 5.342 4.910 4.533 14 | 13.004 12.106 11 296 10.563 9.899 | 9.295 8.745 8.244 | 7.786 .387 6628 5.002 | 5724 5.48 5.00e 4.611 15 | 13.865 12.849 11938 11.118 10.380|9.712 9.108 8.569 8.061 7.506| 6.811 .142|5847|5575|5.092| 4.675 16 | 14.718 13.57| 12.561 11.662 1na38 | 10.106 9.447 8.861| 0.313 .824|6974 6265|5.954| 5.069| .162 | 4.730 17 | 15.562 14292| 13.166 12.166 11274| 10.47 9.763 9.122 8.544 022|7120 5373|604715749| 5.222| 4,775 18 | 16.398 14992 13.754 12.659 11.690|1032810069 9.372 8.756 B201| 7250 467|6.128| 5.818|5273| 4.B12 19 | 17.226 1567| 14.324 13.134 12ca5| 11158 10.336 9.604 8.960 385| 7366 6550|6.198| 5.077 | .316 | 4.844 20 18.046 16351 14877 1350 12462 11470 10049818 9.129 8514 7469 6236259528 5.353 4.870 21 | 18.857 17.011 | 15.415 14029 12.821 | 11 764 10836 | 10.017| 9.292 B.649 |562 5687 | 6312 | 5.973 | 5.384 | 4.B91 22 | 19.660 17.658 15.9g7 14.451 13.163| 12.042 11.061 10.201 9.442 B772|7645 743| 6.359|6.011 | 5.410| 4.909 23 | 20.456 292|18.444 14.867 13489| 12.303 11.272| 10371 9.58 B3| 7.718 792|6399| 5.044 |5.432 | 4.926 24 21.243 18914 16536 15247 13.799 12.550 11.469 10529 9.707 8585 .784 835 6434 6035.451 4.837 25 22.023 19.523 17413 15.622 14.09 12.783 11.654 10.675 9823 9.077 7843 6873 6.446.0975.7 4.948 26 | 22795 20.121 |17.877 15.983 14.375|13,003 11826| 10810| 9.929 9.161 | 886 6906| 6491 | 6118 | 5,480 |4956 27 | 23.560 20.707| 18.327 16.330 14.643| 13.211 11.967 10.935 1002 9.23717943 935| 6.514|6.136| 5.492| 4.964 28 | 24.318 21 281| 18.764 16.683 14,898| 13.408 12.137| 11.051 10.118 9.307| 984 6981 |6.534|6.152 5.502 | 4.970 29 | 25.066 21844| 19.188 16 984 15.141 | 13.501 12278|11158| 10.198 9.370| 8022 983|6551 |6166 |6.510 | 4.975 30 25.C8 22.396 1900 17292 15.372 13.765 12.409 11.25 10274 9.427B055 70036.56.177 5517 4.979 40 | 325 27.355 | 23.115 19.793 17.159| 15046 13332| 11925| 10.757 9.779 | 8244 7105 | 6.642 |62 | 5.548 | 4.997 50 39.16 31424 25.730 21482 1826 15.762 13801 12233 10S62 991530713366 6248 6.554 4.9 40 0.572 053 0307 0208 0.142 0097 0067 00 0.032 0022 0011 0.0 0.00.03 0.00 0.001 00.32 0228141034021 0013 0 .00.00