What is the present value of $4,000 to be received two years from now, if the di

Question

What is the present value of $4,000 to be received two years from now, if the discount rate is: (a) 13%, (b) 15%, and (c) 20%?

Use the appropriate table (Appendix C: Table 1, Table2) to answer the above questions.

Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions. (Do not round intermediate calculations. Round "PV Factor" to 5 decimal places and "PV values" to 2 decimal places.)

What is the present value of $4,000 to be received two years from now, if the discount rate is: (a) 13%, (b) 15%, and (c) 20%?

Explanation / Answer

future after-tax cash flow             4,000.00 cash flow received at the end of year Rate PV Factor PV 13.00%             0.78315             3,132.60 15.00%             0.75614             3,024.56 20.00%             0.69444             2,777.76 Time PVF at 13% PVF at 15% PVF at 20%                                                                                  1.00             0.88496               0.86957                               0.83333                                                                                  2.00             0.78315               0.75614                               0.69444

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.