Calculate the present value of the following future cash flows, rounding all calculations to the nearest dollar: 11. 12. 13. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) $5,000received in threeyears with interest of 10% $5,000received in each of the following threeyears with interest of 10% Payments of $2,000 $3,000 and $4,000received in years 12and 3respectively, with interest of 7% 11. Calculate the present value of $5,000 received in three years with interest of 10%. (Enter any factor amounts to three decimal places, X.XXX.) Future value 5000 × X Present value factor .751 = Present value = 3755 12. Calculate the present value of $5,000 received in each of the following three years with interest of 10%. (Enter any factor amounts to three decimal places, X.XXX.) Amount of each cash inflow X Annuity present value factor 5000 × 2.487 = Present value of an annuity 12435 13. Calculate the present value for payments of $2,000, $3,000, and $4,000 received in years 1, 2 and 3, respectively, with interest of 7%. (Enter any factor amounts to three decimal places, X.XXX.) Future value Year 1 Year 2 Year 3 Total x × × × Present value factor = = Present value
Calculate the present value of the following future cash flows, rounding all calculations to the nearest dollar: 11. 12. 13. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) $5,000received in threeyears with interest of 10% $5,000received in each of the following threeyears with interest of 10% Payments of $2,000 $3,000 and $4,000received in years 12and 3respectively, with interest of 7% 11. Calculate the present value of $5,000 received in three years with interest of 10%. (Enter any factor amounts to three decimal places, X.XXX.) Future value 5000 × X Present value factor .751 = Present value = 3755 12. Calculate the present value of $5,000 received in each of the following three years with interest of 10%. (Enter any factor amounts to three decimal places, X.XXX.) Amount of each cash inflow X Annuity present value factor 5000 × 2.487 = Present value of an annuity 12435 13. Calculate the present value for payments of $2,000, $3,000, and $4,000 received in years 1, 2 and 3, respectively, with interest of 7%. (Enter any factor amounts to three decimal places, X.XXX.) Future value Year 1 Year 2 Year 3 Total x × × × Present value factor = = Present value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Calculate the present value of the following future cash flows, rounding all calculations to the
nearest dollar:
11.
12.
13.
(Click the icon to view Present Value of $1 table.)
(Click the icon to view Present Value of Ordinary Annuity of $1 table.)
$5,000received in threeyears with interest of 10%
$5,000received in each of the following threeyears with interest of 10%
Payments of $2,000 $3,000 and $4,000received in years 12and 3respectively, with interest of 7%
11. Calculate the present value of $5,000 received in three years with interest of 10%. (Enter any
factor amounts to three decimal places, X.XXX.)
Future value
5000
×
X
Present value factor
.751
=
Present value
=
3755
12. Calculate the present value of $5,000 received in each of the following three years with interest of
10%. (Enter any factor amounts to three decimal places, X.XXX.)
Amount of each cash inflow
X
Annuity present value factor
5000
×
2.487
=
Present value of an annuity
12435
13. Calculate the present value for payments of $2,000, $3,000, and $4,000 received in years 1, 2 and
3, respectively, with interest of 7%. (Enter any factor amounts to three decimal places, X.XXX.)
Future value
Year 1
Year 2
Year 3
Total
x
×
×
×
Present value factor
=
=
Present value
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education