Question: Problem 1-12 Calculating the Present Value of Future Cash Flows [L.01-4] A financial company advertises on television that they will pay you $65,000 now in

Problem 1-12 Calculating the Present Value of Future Cash Flows [L.01-4]

Problem 1-12 Calculating the Present Value of Future Cash Flows [L.01-4] A financial company advertises on television that they will pay you $65,000 now in exchange for annual payments of $9,000 that you are expected to recelve for a legal settiement over the next 15 years. You estimate the time value of monoy at 11 percent. (a) Calculate the present value of the annual payments. Use Exhibit 1.D. (Round time value factor to 3 decimal places and final answer to the nearest whole number.) (b) Would you accept this offer? Yes No

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