Use a 5 percent discount rate to compute the NPV of each of the following series of

Question:

Use a 5 percent to compute the NPV of each of the following series of cash receipts and payments.
a. $6,200 received now (year 0), $1,890 paid in year 3, and $4,000 paid in year 5.
b. $10,000 paid now (year 0), $12,690 paid in year 2, and $31,000 received in year 8.
c. $20,000 received now (year 0), $13,500 paid in year 5, and $7,500 paid in year 10. Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...