a. $10,600 to be received 20 years from today. b. $15,000 to be received annually for 10 years. c. $11,200 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $29,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual
rate of 15 percent. (Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final
answers to the nearest whole dollar amount.)
a. $10,600 to be received 20 years from today.
b. $15,000 to be received annually for 10 years.
c. $11,200 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth
year.
d. $29,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years
(total of five years in which cash is received).
Transaction a
Transaction b
Transaction c
Transaction d
Present Value
Transcribed Image Text:Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. (Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. $10,600 to be received 20 years from today. b. $15,000 to be received annually for 10 years. c. $11,200 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $29,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received). Transaction a Transaction b Transaction c Transaction d Present Value
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