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.

Requirement 1. NOTE: Table is in attachment.

Requirement 1. What is the total present value of the cash flows received over thefive-year period?

Calculate the total present value of$1 received each year. (Round to three decimalplaces, X.XXX.)

Present Value

One Year From Now =

Two Years From Now =

Three Year From Now =

Four Years From Now =

Five Years From Now =

Total Present Value =

Requirement 2. Could you characterize this stream of cash flows as anannuity? Why or whynot?

The stream of cash flows

is

is not

an annuity because it is a stream of

equal

unequal

cash payments made at

different

equal

of time intervals.