Question: Use the present value table in Appendix A and Appendix B to compute the NPV of each of the following cash outflows: Required: $30,500 paid

Use the present value table in Appendix A and Appendix B to compute the NPV of each of the following cash outflows:

Required:

  1. $30,500 paid at the end of 4 years. The discount rate is 3 percent.
  2. $5,800 paid at the end of 3 years and $7,050 paid at the end of 5 years. The discount rate is 8 percent.
  3. $12,500 paid annually at the end of each of the next 4 years. The discount rate is 3 percent.
  4. $1,560 paid annually at the end of each of the next 4 years and $3,120 paid at the end of the fifth year. The discount rate is 6 percent.

(For all requirements, round discount factor(s) to 3 decimal places, all other intermediate calculations and final answers to the nearest whole dollar amount.)

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!