Use the present value table in Appendix A and Appendix B to compute the NPV of each of the following cash outflows: Required: a. $45,000 paid at the end of four years. The discount rate is 9 percent. b. $2,200 paid at the end of three years and $9,550 paid at the end of five years. The discount rate is 6 percent. c. $12,600 paid annually at the end of each of the next four years. The discount rate is 9 percent. d. $2,100 paid annually at the end of each of the next four years and $4,200 paid at the end of the fifth year. The discount rate is 6 percent. Note: For all requirements, round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. a. Net present value b. Net present value c. Net present value d. Net present value Amount
Use the present value table in Appendix A and Appendix B to compute the NPV of each of the following cash outflows: Required: a. $45,000 paid at the end of four years. The discount rate is 9 percent. b. $2,200 paid at the end of three years and $9,550 paid at the end of five years. The discount rate is 6 percent. c. $12,600 paid annually at the end of each of the next four years. The discount rate is 9 percent. d. $2,100 paid annually at the end of each of the next four years and $4,200 paid at the end of the fifth year. The discount rate is 6 percent. Note: For all requirements, round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount. a. Net present value b. Net present value c. Net present value d. Net present value Amount
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Use the present value table in Appendix A and Appendix B to compute the NPV of each of the following cash outflows:
Required:
a. $45,000 paid at the end of four years. The discount rate is 9 percent.
b. $2,200 paid at the end of three years and $9,550 paid at the end of five years. The discount rate is 6 percent.
c. $12,600 paid annually at the end of each of the next four years. The discount rate is 9 percent.
d. $2,100 paid annually at the end of each of the next four years and $4,200 paid at the end of the fifth year. The
discount rate is 6 percent.
Note: For all requirements, round discount factor(s) to 3 decimal places, all other intermediate calculations and
final answers to the nearest whole dollar amount.
a. Net present value
b. Net present value
c.
d. Net present value
Net present value
Amount
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