Problem 6-6 Calculating Annuity Values (LO1] Your company will generate $72,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Present value An investment will pay you $42,000 in 12 years. If the appropriate discount rate is 6.9 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $38,000 per year forever. If the required return on this investment is 5.3 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value Beginning three months from now. you want to be able to withdraw $3,400 each quarter from your bank account to cover college expenses over the next four years. If the account pays.56 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value The appropriate discount rate for the following cash flows is 7.88 percent per year. Year 1 2 3 4. Cash Flow $2,580 0 4.020 2.270 What is the present value of the cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Present value