Week five questions
... Five Questions: Finance and Accounting, Math Problem Chapter 8 Exercise 1. Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar:
The present value is calculated using the formula:
a. A single cash inflow of $12,000 in five years, discounted at a 12% rate of return.
b. An annual receipt of $16,000 over the next 12 years, discounted at a 14% rate of return.
c. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return.
= $13,636.36 + $7,513.15
d. An annual receipt of $8,000 for three years follow...