Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. (Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. $12,300 to be received 20 years from today. b. $14,000 to be received annually for 10 years. c. $14,000 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $32,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received). Transaction a Transaction b Transaction c Transaction d Present Value Present Value of $1 Due in n Periods* Number of Discount Rate Periods (n) 1% 112% 5% 6% 8% 10% 12% 15% 20% 1 .990 .985 .952 .943 .926 .909 .893 .870 .833 2 .980 .971 .907 .890 .857 .826 .797 .756 .694 3 .971 .956 .864 .840 .794 .751 .712 .658 .579 4 .961 .942 .823 .792 .735 .683 .636 .572 .482 5 .951 .928 .784 .747 .681 .621 .567 .497 .402 6 .942 .915 .746 .705 .630 .564 .507 .432 .335 7 .933 .901 .711 .665 .583 .513 .452 .376 .279 8 .923 .888 .677 .627 .540 .467 .404 .327 .233 9 .914 .875 .645 .592 .500 .424 .361 .284 .194 10 .905 .862 .614 .558 .463 .386 .322 .247 .162 20 .820 .742 .377 .312 .215 .149 .104 .061 .026 24 .788 .700 .310 .247 .158 .102 .066 .035 .013 36 .699 .585 .173 .123 .063 .032 .017 .007 .001 *The present value of $1 is computed by the formula p = 1/(1+i)n, where p is the present value of $1, is the discount rate, and n is the number of periods until the future cash flow will occur. Amounts in this table have been rounded to three decimal places and are shown for a limited number of periods and discount rates. Many calculators are programmed to use this formula and can compute present values when the future amount is entered EXHIBIT 26-3 Present Value of $1 Payable in n Periods Present Value of $1 to Be Received Periodically for n Periods EXHIBIT 26-4 Present Value of a $1 Annuity Receivable Each Period for n Number of Discount Rate Periods 1% 112% 5% 6% 8% 10% 12% 15% 20% Periods (n) 1 0.990 0.985 0.952 2 1.970 3 2.941 1.956 1.859 2.912 2.723 4 3.902 3.854 3.546 5 4.853 4.783 4.329 0.943 0.926 0.909 0.893 0.870 0.833 1.833 1.783 1.736 1.690 1.626 1.528 2.673 2.577 2.487 2.402 2.283 2.106 3.465 3.312 3.170 3.037 2.855 2.589 4.212 2.991 3.993 3.791 3.605 3.352 6 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 7 6.728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 8 7.652 7.486 6.463 6.210 9 8.566 8.361 7.108 6.802 5.747 6.247 5.335 4.968 4.487 3.837 10 9.471 20 24 36 21.243 30.108 7.722 18.046 17.169 12.462 20.030 13.799 27.661 16.547 9.222 5.759 5.328 4.772 7.360 6.710 6.145 5.650 5.019 4.192 11.470 9.818 8.514 7.469 6.259 4.870 12.550 10.529 8.985 7.784 6.434 4.937 14.621 11.717 9.677 8.192 6.623 4.993 4.031 Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. (Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. $12,300 to be received 20 years from today. b. $14,000 to be received annually for 10 years. c. $14,000 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year. d. $32,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received). Transaction a Transaction b Transaction c Transaction d Present Value Present Value of $1 Due in n Periods* Number of Discount Rate Periods (n) 1% 112% 5% 6% 8% 10% 12% 15% 20% 1 .990 .985 .952 .943 .926 .909 .893 .870 .833 2 .980 .971 .907 .890 .857 .826 .797 .756 .694 3 .971 .956 .864 .840 .794 .751 .712 .658 .579 4 .961 .942 .823 .792 .735 .683 .636 .572 .482 5 .951 .928 .784 .747 .681 .621 .567 .497 .402 6 .942 .915 .746 .705 .630 .564 .507 .432 .335 7 .933 .901 .711 .665 .583 .513 .452 .376 .279 8 .923 .888 .677 .627 .540 .467 .404 .327 .233 9 .914 .875 .645 .592 .500 .424 .361 .284 .194 10 .905 .862 .614 .558 .463 .386 .322 .247 .162 20 .820 .742 .377 .312 .215 .149 .104 .061 .026 24 .788 .700 .310 .247 .158 .102 .066 .035 .013 36 .699 .585 .173 .123 .063 .032 .017 .007 .001 *The present value of $1 is computed by the formula p = 1/(1+i)n, where p is the present value of $1, is the discount rate, and n is the number of periods until the future cash flow will occur. Amounts in this table have been rounded to three decimal places and are shown for a limited number of periods and discount rates. Many calculators are programmed to use this formula and can compute present values when the future amount is entered EXHIBIT 26-3 Present Value of $1 Payable in n Periods Present Value of $1 to Be Received Periodically for n Periods EXHIBIT 26-4 Present Value of a $1 Annuity Receivable Each Period for n Number of Discount Rate Periods 1% 112% 5% 6% 8% 10% 12% 15% 20% Periods (n) 1 0.990 0.985 0.952 2 1.970 3 2.941 1.956 1.859 2.912 2.723 4 3.902 3.854 3.546 5 4.853 4.783 4.329 0.943 0.926 0.909 0.893 0.870 0.833 1.833 1.783 1.736 1.690 1.626 1.528 2.673 2.577 2.487 2.402 2.283 2.106 3.465 3.312 3.170 3.037 2.855 2.589 4.212 2.991 3.993 3.791 3.605 3.352 6 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 7 6.728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 8 7.652 7.486 6.463 6.210 9 8.566 8.361 7.108 6.802 5.747 6.247 5.335 4.968 4.487 3.837 10 9.471 20 24 36 21.243 30.108 7.722 18.046 17.169 12.462 20.030 13.799 27.661 16.547 9.222 5.759 5.328 4.772 7.360 6.710 6.145 5.650 5.019 4.192 11.470 9.818 8.514 7.469 6.259 4.870 12.550 10.529 8.985 7.784 6.434 4.937 14.621 11.717 9.677 8.192 6.623 4.993 4.031
Expert Answer:
Answer rating: 100% (QA)
Present Value Calculations a 12300 to be received 20 years from today Present value factor 1 1 01520 ... View the full answer
Related Book For
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Using the tables in Exhibits 263 and 264, determine the present value of the following cash flows, discounted at an annual rate of 15 percent: In Exhibits 263 In Exhibits 264 a. $10,000 to be...
-
Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. Exhibit 26-3: Present Value of $1 Payable in n Periods...
-
Is it possible to produce an iron-carbon alloy that has a minimum tensile strength of 690 MPa (100,000 psi) and a minimum ductility of 40%RA? If so, what will be its composition and microstructure...
-
Develop two approaches using reference group theory to reduce drug, alcohol, or cigarette consumption among teenagers.
-
Determine a condition on |x - 1| that will assure that: (a) |x2 - 1| < 1/2, (b) |x2 - 1 < 1/10-3, (c) |x2 - 1| < 1/n for a given n N, (d) |x3 - 1| < 1/n for a given n N.
-
Describe some of the new technologies being used by e-commerce retailers to improve service, convenience and user experience.
-
1. Given the eventual need for rigorous financial management, should every company have extensive cost controls in place from the first moment of operation? Explain your answer. 2. Google recently...
-
Sunland Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2022 are as follows: Variable manufacturing costs Fixed manufacturing costs...
-
A survey by the Pew Research Center, conducted in 16 countries among 20,132 respondents from April 4 to May 29, 2016, before the United Kingdom's so-called Brexit referendum to exit the EU. The...
-
2 Dictionary Abstract Datatype (16 points) Recall that the dictionary abstract data type stores a collection of keys, and supports the operations insert, delete, and search. If the keys are totally...
-
1. Consider the given map of the divisions of a fictional country. Convert it to a suitable graph, and color them using maximum three colors (Red, Green, Blue) so that no two adjacent divisions have...
-
Q2.2 5 Points Consider another circuit that is referred to as MOD2 and whose interface is as shown below: B B X4 Save Answer Y4 X4 MOD1 X4 X3 X2 X1 0000 0001 011 0 110 0 Save Answer X3 Y4 Y3 Where...
-
A B 1. Label partial dependency. C 2. Label Transitive dependency. D 3. Solve 2NF problem by breaking master table. 4. Solve 3NF problem by breaking master table. E F G
-
6. Let variables S represent a package being small, H being heavy, and E being expensive. Let's consider a package that is not small as big, not heavy as light, and not expensive as inexpensive....
-
Write a brief research paper on the following topic related to Organizational Behavior: Styles of Leadership
-
Research an article from an online source, such as The Economist, Wall Street Journal, Journal of Economic Perspectives, American Journal of Agricultural Economics, or another academic journal. The...
-
An inventor claims to have developed an engine that takes in \(100 \mathrm{MJ}\) of heat at \(400 \mathrm{~K}\), rejects \(40 \mathrm{MJ}\) of heat at \(200 \mathrm{~K}\), and delivers \(15...
-
The value of \(\Delta W=\int_{1}^{2} P d V\) of an ideal gas in a reversible isothermal process is (a) 0 (b) \(\frac{P_{1} V_{1}-P_{2} V_{2}}{\gamma-1}\) (c) \(P_{1} V_{1} \ln \frac{V_{2}}{V_{1}}\)...
-
Compressibility factor for a given vapour or gas can be represented by (a) \(Z=1+B^{\prime} P+C^{\prime} P^{2}+D^{\prime} P^{3}+\cdots\) (b) \(Z=1+\frac{B}{V}+\frac{C}{V^{2}}+\frac{D}{V^{3}}+\cdots\)...
Study smarter with the SolutionInn App