Question 1. What is the present value of $25,000 that you will receive at the end of two years with a discount rate of 5.6%?
Question 2. What is the present value of $2,000 that you will receive at the end of 3 years with a discount rate of 5.6%?
Question 3. (USE End of year sum fact) cash flow scenario: annual payments of $50,000 paid at the beginning of each of the next five years (total of $250,000). What is the NP of all lease payments with a discount rate of 5.6%?
Question 4. What is the net present value of a lease that requires you to pay $10,000 at the beginning of each year for the next five years and includes a provision for a rebate of $5,000 at the end of year 5?
Question 5: What is the net present value of an item that has a purchase price of $20,000 requires a $1,000 maintenance at the end of each year expect year 4, and is expected to have a salvage value of $1,000 at the end of the 5 year useful life?