Exercise 14A-3 (Algo) Basic Present Value Concepts [LO14-7]

Exercise 14A-3 (Algo) Basic Present Value Concepts (LO14-7] In eight years, when he is discharged from the Air Force, Steve wants to buy a $16,000 power boat. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $16,000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Eleven percent 2. Twelve percent