What is the present value of $4,000 to be received two years from now, if the discount rate is: (a) 13%, (b) 15%, and (c) 20%?

1.	Use the appropriate table (Appendix C: Table 1, Table2) to answer the above questions.

	Discount rate	present values
a	13%	$3132
b	15%	$3024
c	20%	$2776

2.	Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions. (Do not round intermediate calculations. Round "PV Factor" to 5 decimal places and "PV values" to 2 decimal places.)

future after-tax cash flow		$4000
cash flow received at the end of year
Rate	PV Factor	PV
13%
15%
20%