Calculate the present values of the following cash flows (a) $100,000 to be received in 10 years at a discount rate of 6 (b) $50,000 to be received in 5 years at a discount rate of 1 (c) $75,000 to be received in 8 years at a discount rate of 5 ...

Using Equation53 Present value amountPresent ...

Calculate the present values of the following cash flows: (a) $100,000 to be received in 10 years

Question:

Calculate the present values of the following cash flows:
(a) $100,000 to be received in 10 years at a of 6%
(b) $50,000 to be received in 5 years at a of 1%
(c) $75,000 to be received in 8 years at a of 5%.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...