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). Transaction a Transaction b Transaction c Transaction d Present Value Present Value of $1 Due in n Periods* Number of Discount Rate Periods (n) 1% 112% 5% 6% 8% 10% 12% 15% 20% 1 .990 .985 .952 .943 .926 .909 .893 .870 .833 2 .980 .971 .907 .890 .857 .826 .797 .756 .694 3 .971 .956 .864 .840 .794 .751 .712 .658 .579 4 .961 .942 .823 .792 .735 .683 .636 .572 .482 5 .951 .928 .784 .747 .681 .621 .567 .497 .402 6 .942 .915 .746 .705 .630 .564 .507 .432 .335 7 .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 .001 *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 EXHIBIT 26-3 Present Value of $1 Payable in n Periods Present Value of $1 to Be Received Periodically for n Periods EXHIBIT 26-4 Present Value of a $1 Annuity Receivable Each Period for n Number of Discount Rate Periods 1% 112% 5% 6% 8% 10% 12% 15% 20% Periods (n) 1 0.990 0.985 0.952 2 1.970 3 2.941 1.956 1.859 2.912 2.723 4 3.902 3.854 3.546 5 4.853 4.783 4.329 0.943 0.926 0.909 0.893 0.870 0.833 1.833 1.783 1.736 1.690 1.626 1.528 2.673 2.577 2.487 2.402 2.283 2.106 3.465 3.312 3.170 3.037 2.855 2.589 4.212 2.991 3.993 3.791 3.605 3.352 6 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 7 6.728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 8 7.652 7.486 6.463 6.210 9 8.566 8.361 7.108 6.802 5.747 6.247 5.335 4.968 4.487 3.837 10 9.471 20 24 36 21.243 30.108 7.722 18.046 17.169 12.462 20.030 13.799 27.661 16.547 9.222 5.759 5.328 4.772 7.360 6.710 6.145 5.650 5.019 4.192 11.470 9.818 8.514 7.469 6.259 4.870 12.550 10.529 8.985 7.784 6.434 4.937 14.621 11.717 9.677 8.192 6.623 4.993 4.031