Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent: Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Required: a. $60,000 to be received 20 years from today. b. $32,000 to be received annually for 10 years. c. $28,000 to be received annually for five years, with an additional $18,000 salvage value expected at the end of the fifth year. d. $50,000 to be received annually for the first three years, followed by $40,000 received annually for the next two years (total of five years in which cash is received) Transaction a Transaction b Transaction c Transaction d Present Value $ $ S S 2,016 166,912 99,772 202,870
Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent: Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Required: a. $60,000 to be received 20 years from today. b. $32,000 to be received annually for 10 years. c. $28,000 to be received annually for five years, with an additional $18,000 salvage value expected at the end of the fifth year. d. $50,000 to be received annually for the first three years, followed by $40,000 received annually for the next two years (total of five years in which cash is received) Transaction a Transaction b Transaction c Transaction d Present Value $ $ S S 2,016 166,912 99,772 202,870
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15
percent:
Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest
whole dollar amount.
Required:
a. $60,000 to be received 20 years from today.
b. $32,000 to be received annually for 10 years.
c. $28,000 to be received annually for five years, with an additional $18,000 salvage value expected at the end of the fifth year.
d. $50,000 to be received annually for the first three years, followed by $40,000 received annually for the next two years (total of five
years in which cash is received).
Transaction a
Transaction b
Transaction c
Transaction d
Present Value
$
$
$
S
2,016
166,912
99,772
202,870
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