MACSB: Analytic Bloom's: Apply Difficulty: Challenge Learning Objective: 09-02 The future value is based on the number of periods over which the funds are to be compounded at a given interest rate. 60. Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this 20 year cash flow? Use an 11% discount rate. A. $19,034 B. $27,870 C. $32,389 D. none of these PVA = A. PVIFA (App. D: 11%, 10 periods) = $2,000 x 5.889 = $11,778 PVA = A. PVFA (App. D: 11%, 10 periods) = $2,000 x 5.889 = $17,688 x PVIF (App. B: 11%, 10 periods) PVIF = $17,688 - (.352) = $7,255 $11,778 + $7,255 = $19,034 MACSB: Analytic Bloom's: Apply Dificul Culture