Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar:
Basic present value calculations
Calculate the present value of the following cash flows, rounding to the nearest dollar:
a A single cash inflow of $12,300 in 5 years, discounted at a 12% rate of return.
b An annual receipt of $16,300 over the next 12 years, discounted at a 14% rate of return.
c A single receipt of $15,300 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return.
d An annual receipt of $8,300 for 3 years followed by a single receipt of $10,000 at the end of Year 4. The company has a 16% rate of return.