Using a present value table (Table 6-4 and Table 6-5), calculate the present value for the following: (Use appropriate factor(s) from the tables provided.)
Required:
a. A car down payment of $30,000 that will be required in six years, assuming an interest rate of 8%.
b. A lottery prize of $6 million to be paid at the rate of $300,000 per year for 20 years, assuming an interest rate of 18%.
c. The same annual amount as in part b, but assuming an interest rate of 20%.
d. A capital lease obligation that calls for the payment of $8,000 per year for 10 years, assuming a discount rate of 8%.