Answer Happy

Use Table PV-1 and Table PV-2 to determine the present values of the following cash flows. (For all requirements, round PV factor to 3 decimal places, intermediate and final answer to the nearest dollar amount.) P $40,000 to be paid annually for 10 years, discounted at an annual rate of 6 percent. Payments are to occur at the end of each year. a. b. $12,000 to be received today, assuming that the money will be invested for two years at 8 percent annually $500 to be paid monthly for 36 months, with an additional "balloon payment of $18,000 due at the end of the 36th C. month, discounted at a monthly interest rate of 1% percent. The first payment is to be one month from today. $30,000 to be received annually for the first three years, followed by $20,000 to be received annually for the next d. two years (total of five years in which collections are received), discounted at an annual rate of 8 percent. Assume collections occur at year-end