Use the present value tables included in Appendix A of your textbook to compute the NPV of $12,500 received in year 5 at a 6% discount rate.

Name: Use the present value tables included in Appendix A of your textbook to compute the NPV of $12,500 received in year 5 at a 6% discount rate.
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Quizplus · Accepted Answer

The present value factor for 5 years at a 6% discount rate is approximately 0.7473. Multiplying $12,500 by 0.7473 gives an NPV of $9,341.25, which is closest to $9,337.50.

Use the Present Value Tables Included in Appendix a of Your