Question: Question Content Area Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2

  1. Question Content Area

    Following is a table for the present value of $1 at compound interest:

    Year 6% 10% 12%
    1 0.943 0.909 0.893
    2 0.890 0.826 0.797
    3 0.840 0.751 0.712
    4 0.792 0.683 0.636
    5 0.747 0.621 0.567

    Following is a table for the present value of an annuity of $1 at compound interest:

    Year 6% 10% 12%
    1 0.943 0.909 0.893
    2 1.833 1.736 1.690
    3 2.673 2.487 2.402
    4 3.465 3.170 3.037
    5 4.212 3.791 3.605

    Using the tables provided, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, the present value of the investment cash inflows, assuming an earnings rate of 12%, is

    a.$21,259

    b.$20,352

    c.$3,969

    d.$22,190

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

43. Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840...

Q:

Please answer all and I will give thumbs up The expected average rate of return for a proposed investment of $756,000 in a fixed asset, with a useful life of four years, straight-line depreciation,...

Q:

Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751...

Q:

Thanks in advance, I will rate 5-star The amount of the average investment for a proposed investment of $173,000 in a fixed asset with a useful life of four years, straight-line depreciation, no...

Q:

Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 1296 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751...

Q:

Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 uw - 0.792 0.683 0.636 0.747 0.621 0.567 Below is a table for...

Q:

Question 2: Project A requires an original investment of $50,000. The project will yield cash flows of $15,000 per year for seven years. Project B has a calculated net present value of $13,500 over a...

Q:

Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 3 0.840 0.751...

Q:

Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 Below is a table for the...

Q:

Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 Below is a table for the...

Q:

Consider a model with n firms of which m are innovators and n - m are non-innovators. Marginal costs and fixed costs are MC = c - x and F = 9000 for innovators and MC = c and F = 1800 for...

Q:

A company established a petty cash fund of $100 on September 1. On September 10, the petty cash fund was replenished when there was $16 remaining and there was petty cash receipts for: office...

Q:

Question 3 3 2 ptsRowan struggles financially and as a result has to live on less than $ 1 . 2 5 in Spain, what is this called?Conflict theoryPoverty lineExtreme povertyFeminization of poverty

Q:

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

Q:

Mixed costs can be separated into their variable and fixed components by using the high-low method, which considers the change in cost between the highest and lowest activity levels in the data set...

Q:

Absorption and variable costing differ in that absorption costing - includes all manufacturing costs, both vari able and fixed, as product costs. >- presents nonmanufacturing costs according to...

Q:

Capacity measures affect the setting of predetermined overhead rates because the use of expected capacity (the budgeted capacity for the upcoming year) will result in a predetermined overhead rate...