Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the present value of $2,000 to be received 2 years from now, if the discount rate is: (a) 9%, (b) 12%, and (c)

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
what is the present value of $2,000 to be received 2 years from now, if the discount rate is: (a) 9%, (b) 12%, and (c) 15%? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions 2. Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions Complete this question by entering your answers in the tabs below. Required 1Required 2 Use the appropriate table (Appendix C: Table 1) to answer the above questions. (Round "PV Factor" to 3 decimal places.) Discount Present Values Rate 9% 12% le) | 15% What is the present value of $2,000 to be received 2 years from now, if the discount rate is: (a) 9%, (b) 12%, and (c) 15%? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions. 2. Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions. (Round "PV Factor" to 5 decimal places and "PV values" to 2 decimal places.) Future after-tax cash flow Cash flow received at the end of year PV Factor Rate 9% 12% 15% Required 1 TABLE 1 Present Value of $1 Periods 4% 5% 6% 7% 8 9% 10% 11% 12% 13% 14% i5% 20% 25% 30% 1 0.962 0952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0 877 0.870 0.833 0.800 0.769 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.694 0.640 0592 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0693 0.675 0.658 0.579 0.512 0.455 4 0.855 0.823 0.792 0.763 0.735 0.70s 0.683 0.659 0636 0.613 0.592 0.572 0.482 0.410 0.350 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0543 0.519 0.497 0.402 0.328 0.269 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.335 0.262 0.207 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0482 0452 0.425 0.400 0.376 0.279 0.210 0.159 S 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.233 0.163 0.123 9 0.703 0645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 030S 0.284 0.194 0.134 0.094 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.162 0.107 0.073 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.135 0086 0.056 12 0625 0.557 0.497 0444 0397 0.356 0.319 0.2s6 0257 0231 020S OS7 0 112 0069 0043 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.093 0055 0.033 4 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0078 0044 0.025 0.555 0.481 0417 0362 0.315 0275 0.239 0.209 0.183 0.160 0.140 0.123 0.065 0.035 0.020 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.133 0.163 0.141 0.123 0.107 0054 0.028 0.015 7 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.045 0.023 0.012 13 0494 0416 0 350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.038 0.018 0.009 19 0.475 0396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0070 0031 0014 0.007 20 0.456 0.377 0312 0.258 0215 0178 0.149 0.124 0.104 0087 0.073 0061 0.026 0012 0.005 22 0.422 0.342 0.278 0.226 0.134 0.150 0.123 0.101 0083 0.068 0.056 0.046 0.018 0.007 0.003 4 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0082 0066 0053 0.043 0.035 0.013 0.005 0.002 5 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0030 0010 0004 0.00 30 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0 026 0.020 0015 0.004 0.001 0.000 35 0.253 0.181 0.130 0.094 0.068 0049 0.036 0.026 0019 0014 0010 0.008 0.002 0.000 0.000 40 0.208 0.142 0097 0 067 0.046 0.032 0022 0.015 0011 0008 0.005 0.004 0001 0000 0 000 No" The sent value dPV) factor for N periods and rate , Per penod 1+(1 +r), For example, de PV factor for 10%. 5 yearsi?(1+0.10)-0621 Note: The present value (PV) factor fr.vperiods and rate r per period = 1+(1 +ry For example, the PV factor fr 10%, 5 year:1+(1 + 0.10)5:0621

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions