Question: Calculate the present values of each case using the discount rate provided. Show all your calculations CASE SINGLE CASH FLOW DISCOUNT RATE END PERIOD YEAR

Calculate the present values of each case using the discount rate provided. Show all your calculations

CASE SINGLE CASH FLOW DISCOUNT RATE END PERIOD YEAR ANSWER
A 8000 11% 5 1582.59
B 12000 8% 12 925.93
C 60000 13% 20 266.66
D 48000 20% 7 5714.29
E 6000 5% 9 934.92

A PV = 8000/ (1+0.11)5 B PV = 12000/(1+0.08)*12 C PV=6000/(1+0.13)*20

= 8000/1.011 * 5 = 12000/1.08*12 = 6000/1.13*20

= 8000/5.055 = 12000/12.96 = 6000/22.5

= 1582.59 = 925.93 = 266.66

D PV = 48000/(1+0.20)7 E PV= 6000/(1+0.05)9

= 48000/1.2*7 = 6000/1.05 * 9

= 48000/8.4 = 6000/9.45

= 5714.29 = 634.92

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