Exercise 6-17 (Static) Present value calculations Appendix LO 6-10

Using a present value table (Table 6-4 and Table 6-5), calculate the present value for the following:

Note: Use the appropriate value(s) from the tables provided and final answers to the nearest whole dollar.

Required:

A. car down payment of $16,000 that will be required in two years, assuming an interest rate of 10%.

B.lottery prize of $28 million to be paid at the rate of $1,400,000 per year for 20 years, assuming an interest rate of 10%.

C.The same annual amount as in part b, but assuming an interest rate of 14%.

D. A financing lease obligation that calls for the payment of $36,000 per year for 10 years, assuming a discount rate of 8%.

\begin{tabular}{|l|l|l|} \hline a. Present value \\ \hline b. Present value & \\ \hline c. Present value \\ \hline d. Present value & \\ \hline \end{tabular}