Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 8

Use Table PV-1 (in Exhibit B-7) and Table PV-2 (in Exhibit B-9 ) to determine the present values of the following cash flows:
a.15,000 to be paid annually for 10 years, discounted at an annual rate of 6 percent.ayments are to occur at the end of each year.
b.9,200 to be received today, assuming that the money will be invested in a two-year certificate of deposit earning 8 percent annually.
c.300 to be paid monthly for 36 months, with an additional "balloon payment" of $12,000 due at the end of the 36th month, discounted at a monthly interest rate of 1½ percent.he first payment is to be one month from today.
d.25,000 to be received annually for the first three years, followed by $15,000 to be received annually for the next two years (total of five years in which collections are received), discounted at an annual rate of 8 percent.ssume collections occur at year-end.