Question
Using a present value table (Table 6-4andTable 6-5), your calculator, or a computer program present value function, calculate the present value for the following:(Use appropriate
Using a present value table (Table 6-4andTable 6-5), your calculator, or a computer program present value function, calculate the present value for the following:(Use appropriate factor(s) from the tables provided.) |
a. | A car down payment of $30,000 that will be required in five years, assuming an interest rate of 8%. |
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b. | A lottery prize of $6 million to be paid at the rate of $300,000 per year for 20 years, assuming an interest rate of 8%. |
c. | The same annual amount as in part b,but assuming an interest rate of 10%. |
d. | A capital lease obligation that calls for the payment of $8,000 per year for 10 years, assuming a discount rate of 12% |
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