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Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows: Required: a. $110,000 received at the end of six years. The discount rate is 6 percent. b. $4,800 received annually at the end of each of the next 15 years. The discount rate is 7 percent. c. A 10-year annuity of $7,000 per annum. The first $7,000 payment is due immediately. The discount rate is 6 percent. d. $38,750 received annually at the end of years 1 through 5 followed by $31,250 received annually at the end of years 6 through 10. The discount rate is 13 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 $ $ S S Amount 77,530 32,377 249,360 249,360

Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows: Required: a. $110,000 received at the end of six years. The discount rate is 6 percent. b. $4,800 received annually at the end of each of the next 15 years. The discount rate is 7 percent. c. A 10-year annuity of $7,000 per annum. The first $7,000 payment is due immediately. The discount rate is 6 percent. d. $38,750 received annually at the end of years 1 through 5 followed by $31,250 received annually at the end of years 6 through 10. The discount rate is 13 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 $ $ S S Amount 77,530 32,377 249,360 249,360

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 12E
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Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows: Required: a. $110,000 received at the end of six years. The discount rate is 6 percent. b. $4,800 received annually at the end of each of the next 15 years. The discount rate is 7 percent. c. A 10-year annuity of $7,000 per annum. The first $7,000 payment is due immediately. The discount rate is 6 percent. d. $38,750 received annually at the end of years 1 through 5 followed by $31,250 received annually at the end of years 6 through 10. The discount rate is 13 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 77,530 32,377 249,360 249,360
Transcribed Image Text:Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows: Required: a. $110,000 received at the end of six years. The discount rate is 6 percent. b. $4,800 received annually at the end of each of the next 15 years. The discount rate is 7 percent. c. A 10-year annuity of $7,000 per annum. The first $7,000 payment is due immediately. The discount rate is 6 percent. d. $38,750 received annually at the end of years 1 through 5 followed by $31,250 received annually at the end of years 6 through 10. The discount rate is 13 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 77,530 32,377 249,360 249,360
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