Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows: Required: a. $20,250 received at the end of 15 years. The discount rate is 6 percent. b. $7,320 received at the end of four years and $15,750 received at the end of eight years. The discount rate is 8 percent. c. $1,570 received annually at the end of each of the next seven years. The discount rate is 4 percent. d. $43,000 received annually at the end of each of the next three years and $78,500 received at the end of the fourth year. The discount rate is 7 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 Amount
Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows: Required: a. $20,250 received at the end of 15 years. The discount rate is 6 percent. b. $7,320 received at the end of four years and $15,750 received at the end of eight years. The discount rate is 8 percent. c. $1,570 received annually at the end of each of the next seven years. The discount rate is 4 percent. d. $43,000 received annually at the end of each of the next three years and $78,500 received at the end of the fourth year. The discount rate is 7 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 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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Subject: accounting
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. $20,250 received at the end of 15 years. The discount rate is 6 percent.
b. $7,320 received at the end of four years and $15,750 received at the end of eight years. The discount rate is 8 percent.
c. $1,570 received annually at the end of each of the next seven years. The discount rate is 4 percent.
d. $43,000 received annually at the end of each of the next three years and $78,500 received at the end of the fourth year. The
discount rate is 7 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
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