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What is the present value of a stream of 5 end-of-year annual cash receipts of $2,200 given a discount rate of 12%? (Round your final
What is the present value of a stream of 5 end-of-year annual cash receipts of $2,200 given a discount rate of 12%? (Round your final answers to 2 decimal places.)
a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question.
b. Use the appropriate built-in function in Excel to answer the above question.
ABLE 1 Present Value of $1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 2 0.890 0.873 0.857 0.797 0.783 0.925 0.889 0.907 0.864 3 0.840 0.816 0.842 0.772 0.708 0.826 0.751 0.683 0.794 0.735 0.812 0.731 0.659 0.712 0.693 0.769 0.67 0.592 4 0.855 0.823 0.792 0.763 0.636 0.613 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.45 7 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 8 0.731 0.677 0.627 0.582 0.502 0.467 0.434 0.404 0.376 0.351 0.540 0.500 9 0.703 0.645 0.592 0.544 0.460 0.424 0.391 0.361 0.333 0.30 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.12. CABLE 2 Present Value of Annuity of $1 Periods 4% 5% 6% 7% 8% 9% 10% 12% 14% 11% 0.901 13% 0.885 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 2 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 2.322 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 4 3.630 3.546 3.465 3.387 3.312 3.240 3.102 3.037 2.974 2.914 3.170 3.791 5 4.452 4.329 4.212 4.100 3.993 3.890 3.605 3.517 3.433 3.696 4.231 6 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.998 3.889 7 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 9 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 10 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.453 11 8.760 8.306 7.499 7.139 6.805 6.495 6.207 5.938 5.687 7.887 8.384 12 9.385 8.863 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 13 9.986 9.394 8.853 8.358 7.904 7.103 6.750 6.424 6.122 5.842 7.487 7.786 14 10.563 9.899 9.295 8.745 8.244 7.367 6.982 6.628 6.302 6.002 15 11.118 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 10.380 10.838 16 11.652 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265Step by Step Solution
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