Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. (Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. $10,800 to be received 20 years from today. b. $14,000 to be received annually for 10 years. c. $6,300 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $31,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received). Present Value Transaction a Transaction b Transaction c Transaction d Present Value of $1 Due in n Periods Discount Rate Number of Periods (n) EXHIBIT 26-3 Present Value of $1 Payable in n Periods .712 OOO OUAWN- 1% .990 .980 .971 .961 .951 .942 .933 .923 .914 .905 .820 788 .699 112% 985 .971 .956 .942 .928 .915 .901 .888 875 .862 742 700 585 5% 952 907 .864 .823 .784 .746 .711 .677 .645 .614 377 .310 173 6% 943 890 .840 .792 .747 .705 .665 .627 592 558 312 247 .123 8% 926 857 .794 .735 .681 .630 .583 .540 .500 463 215 .158 .063 10% 12% .909 .893 826 .797 .751 .683 .636 .621 .567 .564 .507 .513 .452 .467 404 424361 386 322 .149 104 102 .066 .032 .017 15% .870 .756 .658 572 .497 .432 .376 20% .833 .694 .579 .482 .402 .335 .279 .233 .194 .162 .026 .013 .001 .327 10 284 247 .061 .035 .007 24 36 *The present value of $1 is computed by the formula p = 1/(1+i)n, where p is the present value of $1, is the discount rate, and n is the number of periods until the future cash flow will occur. Amounts in this table have been rounded to three decimal places and are shown for a limited number of periods and discount rates. Many calculators are programmed to use this formula and can compute present values when the future amount is entered Number of Periods Present Value of $1 to Be Received Periodically for n Periods Discount Rate 112% 5% 6% 8% 10% 12% 15% EXHIBIT 26-4 Present Value of a $1 A Receivable Each Period Periods 1% 20% 0.990 0.985 0.952 0.943 0.926 0.909 0.893 0.870 0.833 1.970 1.956 1.859 1.833 1.783 1.736 1.690 1.626 1.528 2.9412.912 2.723 2.673 2.577 2.487 2.402 2.283 2.106 3.902 3.854 3.546 3.465 3.312 3.170 3.037 2.855 2.589 4.853 4.7834.329 4.212 3.993 3.791 3.605 3.352 2.991 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 6.728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 7.652 7.486 6.463 6.210 5.747 5.335 4.968 4.487 3.837 8.566 8.361 7.108 6.802 6.247 5.759 5.328 4.772 4.031 9.471 9.222 7.722 7.360 6.710 6.145 5.650 5.0 194.192 18.046 17.169 12.462 11.470 9.818 8.514 7.469 6.259 4.870 21.243 20.030 13.799 12.550 10.529 8.985 7.784 6.434 4.937 30.108 27.661 16.547 14.621 11.717 9.677 8.192 6.623 4.993