es Exercise 26.4 (Algo) Discounting Cash Flows (LO26-3) 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: Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Required: a. $11,200 to be received 20 years from today. b. $18,000 to be received annually for 10 years. c. $13,300 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $33,000 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). Present Value Transaction a Transaction b Transaction c Transaction d
es Exercise 26.4 (Algo) Discounting Cash Flows (LO26-3) 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: Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Required: a. $11,200 to be received 20 years from today. b. $18,000 to be received annually for 10 years. c. $13,300 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $33,000 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). Present Value Transaction a Transaction b Transaction c Transaction d
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 26.4 (Algo) Discounting Cash Flows (LO26-3)
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:
Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest
whole dollar amount.
Required:
a. $11,200 to be received 20 years from today.
b. $18,000 to be received annually for 10 years.
c. $13,300 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year.
d. $33,000 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).
Present Value
Transaction a
Transaction b
Transaction c
Transaction d
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