Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows a $89,000 received at the end of six years The discount rate is 4 percent b $3,400 received annually at the end of each of the next 15 years The discount rate is 9 percent c A 10 year ...

a 89000 790 discount factor 70310 b 3400 80 ...

Use the present value tables in Appendix A and Appendix B to compute the NPV of each

Question:

Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows.
a. $89,000 received at the end of six years. The is 4 percent.
b. $3,400 received annually at the end of each of the next 15 years. The is 9 percent.
c. A 10-year of $5,000 per annum. The first $5,000 payment is due immediately. The is 6 percent.
d. $20,000 received annually at the end of years 1 through 5 followed by $13,000 received annually at the end of years 6 through
10. The is 15 percent.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... 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...