For each of the following compute the present value (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 

Present Value                        Years               Interest Rate          Future Value

$___________                              13                              7%                 $    15,751

$__________                                4                             13%                       54,557

$__________                               29                            14%                    889,073

$__________                               40                             9%                     554,164

 

2) Machine Co. has identified an investment project with the following cash flows

   Year             Cash flow

     1                   $890

    2                  1,270

     3                  1,530

     4                 1,700

If the discount rate is 9 percent what is the present value of these cash flows (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Present value  $______

If the discount rate is 20 percent what is the present value of these cash flows (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Present value $_______

If the discount rate is 30 percent what is the present value of these cash flows (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Present value $_______