Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at compound interest. Year

image text in transcribed
Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at compound interest. Year 129 10% 0.909 1 0.893 2 0.826 0.792 0.943 0.890 0.840 0.792 0.747 3 4 0.751 0.683 0.621 0.712 0.636 0.567 5 Below is a table for the present value of an annuity of $1 at compound interest 6% Year 1 1096 0.909 1.736 2 12% 0.893 1.690 2.402 3,037 3.605 0.943 1.833 2.673 3.465 4,212 3 4 2.487 3.170 3.791 5 Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next four years, what would be the presente value of the investment cash inflows, assuming an earnings rate of 12%? Oa: 520,352 b. 522,190 Oc. 521.359 Od 5.96

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Causal Effects Econometric Challenges

Authors: Douglas A Schroeder

1st Edition

1441972242, 9781441972248

More Books

Students also viewed these Accounting questions

Question

2 To what extent does their relevance vary internationally?

Answered: 1 week ago

Question

8 What can HRM do to manage diversity?

Answered: 1 week ago

Question

7 How should HRM practitioners approach conflict in the workplace?

Answered: 1 week ago