Present value of $1 Periods 4% 6% 8% 10% 12% 14% 1 0.96154 0.94340 0.92593 0.90909 0.89286 0.87719 2 0.92456 0.89000 0.85734 0.82645 0.79719 0.76947 3 0.88900 0.83962 0.79383 0.75131 0.71178 0.67497 4567899 0.85480 0.79209 0.73503 0.68301 0.63552 0.59208 0.82193 0.74726 0.68058 0.62092 0.56743 0.51937 0.79031 0.70496 0.63017 0.56447 0.50663 0.45559 0.75992 0.66506 0.58349 0.51316 0.45235 0.39964 0.73069 0.62741 0.54027 0.46651 0.40388 0.35056 0.70259 0.59190 0.50025 0.42410 0.36061 0.30751 10 0.67556 0.55839 0.46319 0.38554 0.32197 0.26974 Present value of an annuity of $1 Periods 4% 6% 8% 10% 12% 14% 1 0.96154 0.94340 0.92593 0.90909 0.89286 0.87719 2 1.88609 1.83339 1.78326 1.73554 1.69005 1.64666 3 2.77509 2.67301 2.57710 2.48685 2.40183 2.32163 45678 3.62990 3.46511 3.31213 3.16987 3.03735 2.91371 4.45182 4.21236 3.99271 3.79079 3.60478 3.43308 5.24214 4.91732 4.62288 4.35526 4.11141 3.88867 6.00205 5.58238 5.20637 4.86842 4.56376 4.28830 6.73274 6.20979 5.74664 5.33493 4.96764 4.63886 9 7.43533 6.80169 6.24689 5.75902 5.32825 4.94637 10 8.11090 7.36009 6.71008 6.14457 5.65022 5.21612 Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash flows of $10,000 in each of three years. Project 2 will return $5,000 in Year 1, $10,000 in Year 2, and $15,000 in Year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 2? (Use the discount tables provided and round each present value calculation to the nearest dollar.) O a. $4,080 O b. $24,070 c. $2,530 O d. $5,670
Present value of $1 Periods 4% 6% 8% 10% 12% 14% 1 0.96154 0.94340 0.92593 0.90909 0.89286 0.87719 2 0.92456 0.89000 0.85734 0.82645 0.79719 0.76947 3 0.88900 0.83962 0.79383 0.75131 0.71178 0.67497 4567899 0.85480 0.79209 0.73503 0.68301 0.63552 0.59208 0.82193 0.74726 0.68058 0.62092 0.56743 0.51937 0.79031 0.70496 0.63017 0.56447 0.50663 0.45559 0.75992 0.66506 0.58349 0.51316 0.45235 0.39964 0.73069 0.62741 0.54027 0.46651 0.40388 0.35056 0.70259 0.59190 0.50025 0.42410 0.36061 0.30751 10 0.67556 0.55839 0.46319 0.38554 0.32197 0.26974 Present value of an annuity of $1 Periods 4% 6% 8% 10% 12% 14% 1 0.96154 0.94340 0.92593 0.90909 0.89286 0.87719 2 1.88609 1.83339 1.78326 1.73554 1.69005 1.64666 3 2.77509 2.67301 2.57710 2.48685 2.40183 2.32163 45678 3.62990 3.46511 3.31213 3.16987 3.03735 2.91371 4.45182 4.21236 3.99271 3.79079 3.60478 3.43308 5.24214 4.91732 4.62288 4.35526 4.11141 3.88867 6.00205 5.58238 5.20637 4.86842 4.56376 4.28830 6.73274 6.20979 5.74664 5.33493 4.96764 4.63886 9 7.43533 6.80169 6.24689 5.75902 5.32825 4.94637 10 8.11090 7.36009 6.71008 6.14457 5.65022 5.21612 Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash flows of $10,000 in each of three years. Project 2 will return $5,000 in Year 1, $10,000 in Year 2, and $15,000 in Year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 2? (Use the discount tables provided and round each present value calculation to the nearest dollar.) O a. $4,080 O b. $24,070 c. $2,530 O d. $5,670
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Present value of $1
Periods
4%
6%
8%
10%
12%
14%
1
0.96154
0.94340
0.92593
0.90909
0.89286
0.87719
2
0.92456
0.89000
0.85734
0.82645
0.79719
0.76947
3
0.88900
0.83962
0.79383
0.75131
0.71178
0.67497
4567899
0.85480
0.79209
0.73503
0.68301
0.63552
0.59208
0.82193
0.74726
0.68058
0.62092
0.56743
0.51937
0.79031
0.70496
0.63017
0.56447
0.50663
0.45559
0.75992
0.66506
0.58349
0.51316
0.45235
0.39964
0.73069
0.62741
0.54027
0.46651
0.40388
0.35056
0.70259
0.59190
0.50025
0.42410
0.36061
0.30751
10
0.67556
0.55839
0.46319
0.38554
0.32197
0.26974
Present value of an annuity of $1
Periods
4%
6%
8%
10%
12%
14%
1
0.96154
0.94340
0.92593
0.90909
0.89286
0.87719
2
1.88609
1.83339
1.78326
1.73554
1.69005
1.64666
3
2.77509
2.67301
2.57710
2.48685
2.40183
2.32163
45678
3.62990
3.46511
3.31213
3.16987
3.03735
2.91371
4.45182
4.21236
3.99271
3.79079
3.60478
3.43308
5.24214
4.91732
4.62288
4.35526
4.11141
3.88867
6.00205
5.58238
5.20637
4.86842
4.56376
4.28830
6.73274
6.20979
5.74664
5.33493
4.96764
4.63886
9
7.43533
6.80169
6.24689
5.75902
5.32825
4.94637
10
8.11090
7.36009
6.71008 6.14457
5.65022
5.21612
Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash
flows of $10,000 in each of three years. Project 2 will return $5,000 in Year 1, $10,000 in Year 2, and $15,000
in Year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 2? (Use
the discount tables provided and round each present value calculation to the nearest dollar.)
O a. $4,080
O b. $24,070
c. $2,530
O d. $5,670
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