Solve for the missing information pertaining to each investment proposal. 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.

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).

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Number of Periods (n) 1 2 3 4 5 6 7 8 9 10 20 24 36 Present Value of $1 Due in n Periods* Discount Rate 1% .990 .980 .971 .961 .951 .942 .933 1½2% 5% 6% 8% 10% 12% 15% 20% .833 .985 .952 .943 .926 .909 .893 .870 .971 .907 .890 .857 .826 .797 .756 .694 .956 .864 .840 .794 .751 .712 .658 .579 .942 .823 .792 .735 .683 .636 .572 .482 .784 .747 .681 .621 .567 .497 .402 .928 .915 .746 .705 .564 .507 .432 .335 .376 .279 .923 .630 .901 .711 .665 .583 .513 .452 .888 .677 .627 .540 .467 .404 .914 .875 .645 .592 .500 .905 .862 .614 .558 .463 .327 .233 .424 .361 .284 .194 .386 .322 .247 .162 215 .149 .104 .061 .026 .820 .742 .377 .312 .700 .310 .247 .585 .173 .123 .788 .158 .102 .066 .035 .013 .699 .063 .032 .017 .007 .001 *The present value of $1 is computed by the formula p = 1/(1+i)", where p is the present value of $1, i is the discount rate, and n is the number of periods until the future cash flow will occur. Amounts in this table have been rounded to three decimal places and are shown for a limited number of periods and discount rates. Most financial calculators are programmed to use this formula and can compute present values when the future amount is entered along with values for i and n. EXHIBIT 26-3 Present Value of $1 Payable in n Periods