A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%. Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)
A) $5,000 + ($5,000 x 3.605)
B) $5,000 + $5,000/1.12 + $5,000/(1.12) 2 + $5,000/(1.12) 3 + $5,000/(1.12) 4 $5,000 + $5,000/1.12 + $5,000/(1.12) 2 + $5,000/(1.12) 3 + $5,000/(1.12) 4
C) $5,000/1.12 + $5,000/(1.12) 2 + $5,000/(1.12) 3 + $5,000/(1.12) 4 + $5,000/(1.12) 5 $5,000/1.12 + $5,000/(1.12) 5
D) $5,000 x 3.605
E) $5,000 + ($5,000 x 3.037)

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The Answer of A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%. Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)
A) $5,000 + ($5,000 x 3.605)
B) $5,000 + $5,000/1.12 + $5,000/(1.12) 2 + $5,000/(1.12) 3 + $5,000/(1.12) 4 $5,000 + $5,000/1.12 + $5,000/(1.12) 2 + $5,000/(1.12) 3 + $5,000/(1.12) 4
C) $5,000/1.12 + $5,000/(1.12) 2 + $5,000/(1.12) 3 + $5,000/(1.12) 4 + $5,000/(1.12) 5 $5,000/1.12 + $5,000/(1.12) 5
D) $5,000 x 3.605
E) $5,000 + ($5,000 x 3.037)

A Company's Management Accountant Wishes to Calculate the Present Value