x = 5 FILE Paste Cut Copy Clipboard HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Tahoma 10.5 A A Wrap Text General B I U A Format Painter Merge & Center $ %' G Alignment Number 1485-Present Value Assessments - Excel Normal Bad Conditional Format as Check Cell Formatting Table Good Explanatory... Input Neutral Calculation Linked Cell Note Styles H Insert Delete Format Cells AutoSum Fill Clear Editing Sort & Find & Filter Select ? Sign in T U V W X Y Z AA AB AC AD Font B12 fx 1. Jim is considering an investment that generates cash flows of $3,000 in year 1, $2,000 in year 2 and $1,000 in year 3, as shown in the cash flow sketch above. A B C D E F G H J K L M N 1 2 Per. 3 1 PRESENT VALUE OF $1.00 4% 0.9615 4 2 0.9246 5 3 6 4 0.889 0.8548 6% 0.9434 0.89 0.8396 0.7921 9% 10% 0.9174 0.9091 8% 11% 0.9259 0.9009 0.8573 0.8417 0.8264 0.8116 0.7972 0.76 0.7938 0.7722 0.7513 0.7312 0.7118 0.66 0.735 0.7084 0.683 0.6587 0.6355 0.57 12% 15% 0.8929 0.87 4% 0.9615 P PRESENT VALUE OF A SERIES OF $1.00 CASH FLOWS Per. 6% 8% 9% 10% 1 0.9434 0.9259 0.9174 0.9091 Q R S 11% 0.9009 12% 15% 0.8929 0.8696 2 1.8861 1.8334 1.7833 1.7591 1.7355 1.7125 1.6901 1.6257 3 4 7 5 0.8219 0.7473 0.6806 0.6499 0.6209 0.5935 0.5674 0.5 5 2.7751 2.673 2.5771 2.5313 2.4869 2.4437 2.4018 2.2832 3.6299 3.4651 3.3121 3.2397 3.1699 3.1024 3.0373 2.855 4.4518 4.2124 3.9927 3.8897 3.7908 3.6959 3.6048 3.3522 8 9 0 1 10 |PV=??? 3000 2 2000 1000 Tolerance $1.00 11 Disc't Rate=6% 12 ibove. 13 14 How much should Jim pay for this series of cash flows today, assuming that he demands a rate of return of 6%? Round your answer to the nearest whole dollar. 15 Your answer: $ 5660