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Gold  Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is: Choose the closest answer. A) $14,000. B) $11,468. C) $12,100.                                       D) $10,699.   PVA  9% 4 pds 3.23972, PVA  9% 5 pds 4,58720 PV 1  9%  4 pds  .72451   . PV 1 %    5 pds   .6

Gold  Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is: Choose the closest answer. A) $14,000. B) $11,468. C) $12,100.                                       D) $10,699.   PVA  9% 4 pds 3.23972, PVA  9% 5 pds 4,58720 PV 1  9%  4 pds  .72451   . PV 1 %    5 pds   .6

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gold  Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is: Choose the closest answer.
A) $14,000.
B) $11,468.
C) $12,100.                                      
D) $10,699.
 
PVA  9% 4 pds 3.23972,
PVA  9% 5 pds 4,58720
PV 1  9%  4 pds  .72451   .
PV 1 %    5 pds   .64993
 
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