2017 Data Int Door Metal Roof paint201 Sheet for.. Selections Ch 26 Homework Hel

Question

2017 Data Int Door Metal Roof paint201 Sheet for.. Selections Ch 26 Homework Help Save& Esit Submlt 4 Using the tables in Eshibis 2-2 and 2-4, deteemine the present value of the following cash flows, discouned at an annual rate of 15 percent (Round "Py factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. a.$7,900 to be received 20 years from today b. $13.000 to be received annually for 10 years c. $5.500 to be received annually for five years, with an oddisional $12,000 salvage value expected at the end of the fifth year d. $27000 to be recelved annually for the frst three years, folowed by $20,000 receved annualy for the next two years hotal of tive yeers in which cash is receied

Explanation / Answer

Explanation:

a) $6900 * PVIF (20th year, 15%)

= 6900 * 0.0611 = 482.69

b) $ 13000 * PVIFA (10 years, 15%)

= $ 13000 * 5.019 = 65247

c) $ 5500 * PVIFA (5 years, 15%) + $ 12000 * PVIF (5th year, 15%)

$5500 * 3.352 + 12000*0.497

= 24400

d) $ 27000 * PVIFA (3 years, 15%) + $ 20000 * PVIF (4th year, 15%) + $ 20000 * PVIF (5th year, 15%)

= 27000 * 2.283 + 20000 * 0.5717 + 20000 * 0.4971

= 83019.6

Present vlaue Transaction a 482.69 Transaction b 65247 Transaction c 24400 Transaction d 83019.60

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