Problem B.3 (Static) Using Present Value Tables (LOB-1, LOB-2, LOB-5) Use Table PV-1 and Table PV-2 to determine the present values of the following cash flows. (For all requirements, round PV factor to 3 decimal places, intermediate and final answer to the nearest dollar amount.) $40,000 to be paid annually for 10 years, discounted at an annual rate of 6 percent. Payments are to occur at the end of each year. b. $12,000 to be received today, assuming that the money will be invested for two years at 8 percent annually. C. $500 to be paid monthly for 36 months, with an additional "balloon payment of $18,000 due at the end of the 36th month, discounted at a monthly interest rate of 1% percent. The first payment is to be one month from today. $30,000 to be received annually for the first three years, followed by $20,000 to be received annually for the next d. two years (total of five years in which collections are received), discounted at an annual rate of 8 percent. Assume collections occur at year-end. Present Value $ 271,103 13,824 17,235

Problem B.3 (Static) Using Present Value Tables (LOB-1, LOB-2, LOB-5) Use Table PV-1 and Table PV-2 to determine the present values of the following cash flows. (For all requirements, round PV factor to 3 decimal places, intermediate and final answer to the nearest dollar amount.) $40,000 to be paid annually for 10 years, discounted at an annual rate of 6 percent. Payments are to occur at the end of each year. b. $12,000 to be received today, assuming that the money will be invested for two years at 8 percent annually. C. $500 to be paid monthly for 36 months, with an additional "balloon payment of $18,000 due at the end of the 36th month, discounted at a monthly interest rate of 1% percent. The first payment is to be one month from today. $30,000 to be received annually for the first three years, followed by $20,000 to be received annually for the next d. two years (total of five years in which collections are received), discounted at an annual rate of 8 percent. Assume collections occur at year-end. Present Value $ 271,103 13,824 17,235

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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