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. $12,300 to be received 20 years from today. b. $14,000 to be received annually for 10 years. c. $14,000 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $32,000 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 dPresent Value of $1 Due in n Periods* EXHIBIT 26-3 Number of Discount Rate Present Value of $1 Payable Periods in n Periods (n) 1% 11/2% 5% 6% 8% 10% 12% 15% 20% 990 985 .952 943 .926 909 893 870 .833 .980 971 .907 890 .857 .826 797 .756 .694 .971 956 .864 840 .794 .751 712 .658 .579 YOU AWN- 961 942 823 792 735 683 .636 572 .482 951 928 784 747 .681 .621 567 497 .402 .942 915 746 705 .630 .564 507 .432 .335 933 901 .711 665 583 .513 452 .376 279 8 .923 .888 677 627 .540 .467 404 .327 233 9 .914 875 645 592 500 .424 361 .284 . 194 10 905 862 614 558 463 .386 322 247 162 20 .820 .742 377 .312 .215 . 149 . 104 061 .026 24 788 700 .310 247 . 158 . 102 066 035 .013 36 .699 .585 . 173 . 123 .063 .032 .017 .007 .00 1 "The present value of $1 is computed by the formula p = 1/(1 + ijn, 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 enteredPresent Value of $1 to Be Received Periodically for n Periods EXHIBIT 26-4 Present Value of a $1 Annuity Number of Discount Rate Receivable Each Period for n Periods Periods (n) 1% 11/2% 5% 6% 8% 10% 12% 15% 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 2.941 2.912 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 4.783 4.329 4.212 3.993 3.791 3.605 3.352 2.991 OO N O U A W N - 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 10 9.471 9.222 7.722 7.360 6.710 6.145 5.650 5.019 4. 192 20 18.046 17. 169 12.462 11.470 9.818 8.514 7.469 6.259 4.870 24 21.243 20.030 13.799 12.550 10.529 8.985 7.784 6.434 4.937 36 30. 108 27.661 16.547 14.621 11.717 9.677 8.192 6.623 4.993