Question :
Please use the subsequent Present and Future Value Tables below as a resource to solving the assigned problems:
Future Value of $1
Present Value of $1
1. Basic present value calculations
Evaluate the present value of the subsequent cash flows, rounding to the nearest dollar:
A single cash inflow of $12,000 in five years, discounted at an 11 percent rate of return.
b. An annual receipt of $16,000 over the next 12 years, discounted at an 11 percent rate of return.
c. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 12 percent rate of return.
d. An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4. The company has an 11 percent rate of return.