a 89000 received at the end of six years The discount rate i

a. $89,000 received at the end of six years. The discount rate is 4 percent. (Round discount factor(s) to 3 decimal places.)

Net present Value:

b. $3,400 received annually at the end of each of the next 15 years. The discount rate is 9 percent. (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.)

  Net present Value:

c. A 10-year annuity of $5,000 per annum. The first $5,000 payment is due immediately. The discount rate is 6 percent. (Round discount factor(s) to 3 decimal places.)

  Net present Value:

d. $20,000 received annually at the end of years 1 through 5 followed by $13,000 received annually at the end of years 6 through 10. The discount rate is 15 percent. (Round discount factor(s) to 3 decimal places, and intermediate calculations to the nearest whole dollar amount.)

Net present Value:

3869165712793150523 0 320892033923317371 9-97, 5 2 8 4 0 5 9 4 8 1 4 7 0 3 5 7 91 1233455566777888889 122233344444444444 4 % 0635240729413474788 9 7285586871328245429 5 637, 2 3 3 6 7 7 0 9 6 4 4912248 8-9) 7 5 3 9 6 2 7 2 7 1 5 9 2 5 8 1 368 1233455667778889999 1 122334445555555666 6 5847 7 9 1 5 4 9 3 8 5 8 7 3 9 6 4| | %|77243989663022253703 7421388341564046765 2 30280687129454046539 7| 98631739504937147035 1234455677788999000 8639482692468012345 6 122334445555666666 6 2 33352720207435267880 | | %| 5814783926782224908 5 257 6 98642952838382714814 1234456677889900011 | 8639) 5 9 4 7 1 4 6 9 1 3 4 6 7 8 9 0 122334455556666666 7 55242786020699837986 5 98753074173838382604 1234556778899001122 29) 3 6 9 6 6 3 8 2 6 3 4 9 0 8 4 0 5 2 | | 6| 3027514880844814006 9 8640615936914689123 4 123344455566666777 7 sn 01 13 44 2 96 3 2 46 3 89 07 9 50 8 9 9 49 02 9 6 1342612679720219929 3 0140931438095897403 6 9741627158247913578 9 % 2 86 5 30 2 2 02 3 5 1 60 5 86 6 8 5 66 5 4 90 68735403316886156539 4| 9876420) 7 4 1 7 3 9 5 1 6 1 6 1 5 1 1234566788990112233 %71218132835539366527 3| 99875420752962951738 1234567789901123344 1397070060 3 4 5 6 8 1 6 4 47 | | %| 9670158595543764215 4 0387956354910602206 1 9741738371481368023 5 1 123344556667777888 8 12345678901234567890 1234567890123456789 0 (

Solution

Req a: Amount received at the end of 6th year 89000 PVF at 4% for Yer-6 0.79 Present value of Inflows 70310 Rreq b: Amount received annually 3400 Annuity Present factor for 15 yrs at 9% 8.061 Present value of Inflows 27407.4 Req c: Annuity amount received 5000 Annuity Present factor for 10 years 7.802 (6.802+1.00) Present value of amount received 39010 Req d: Year Cash flows PVF @ 15% Present value 1 20000 0.87 17400 2 20000 0.756 15120 3 20000 0.658 13160 4 20000 0.572 11440 5 20000 0.497 9940 6 13000 0.432 5616 7 13000 0.376 4888 8 13000 0.327 4251 9 13000 0.284 3692 10 13000 0.247 3211 Present value of amount received 88718