esExercise 26.4 (Algo) Discounting Cash Flows (LO26-3)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 15percent:Note: Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearestwhole dollar amount.Required:a. $11,200 to be received 20 years from today.b. $18,000 to be received annually for 10 years.c. $13,300 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year.d. $33,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of fiveyears in which cash is received).Present ValueTransaction aTransaction bTransaction cTransaction d

Discount Rate: 15%Present Value (PV) Formula:PV = Cash Flow / (1 + Discount Rate) ^…

Answered: es Exercise 26.4 (Algo) Discounting…

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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Present value For the case shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The present value is $ Single cash flow $101,000 (Round to the nearest cent.) Discount rate 12% End of period (years) 22
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For each of the following annuities, calculate the annual cash flow: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Cash Flow Present Value Years Interest Rate $ 33,400 6 7% $ 31,150 8 5 $ 174,500 20 10 $ 248,700 22 9 M
Present value For the case shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The present value is $. (Round to the nearest cent.) Single cash flow $91,000 Discount rate 15% C End of period (years) 25
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signment i Dok Int rences Ac Graw Hill Consider the following cash flows: Year 0 1 2 3 Cash Flow -$ 34,000 14, 100 17,600 11,500 a. What is the NPV at a discount rate of zero percent? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. What is the NPV at a discount rate of 8 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the NPV at a discount rate of 18 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Net present value b. Net present value c. Net present value d. Net present value Saved d. What is the NPV at a discount rate of 28 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. O 3 tubi Check my Oct 9 1:0
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