For each of the following compute the present value (Do not round intermediate calculations. Enter your answer

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Question:

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 $_______