Annuity Present Value Inputs Payment $80 Discount Rate/Period 6% Number of Periods 5 Present Value using a Time Line Period 1 2 4 Cash Flows 80 80 80 80 80 Present Value of Each Cash Flow 75.4717 71.19972 67.16954 63.36749 59.78065 Present Value Annuity Present Value using the Formula Present Value Annuity Present Value using the PV Function Present Value

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Annuity
Present Value
Inputs
Payment
$80
Discount Rate/Period
6%
Number of Periods
Present Value using a Time Line
Period
1
2
4
Cash Flows
80
80
80
80
80
Present Value of Each Cash Flow
75.4717 71.19972 67.16954 63.36749 59.78065
Present Value
Annuity Present Value using the Formula
Present Value
Annuity Present Value using the PV Function
Present Value
Transcribed Image Text:Annuity Present Value Inputs Payment $80 Discount Rate/Period 6% Number of Periods Present Value using a Time Line Period 1 2 4 Cash Flows 80 80 80 80 80 Present Value of Each Cash Flow 75.4717 71.19972 67.16954 63.36749 59.78065 Present Value Annuity Present Value using the Formula Present Value Annuity Present Value using the PV Function Present Value
2. An annuity pays $80.00 each period for 5 periods. For these cash flows, the appropriate discount rate/period is 6.0%.
What is the present value of this annuity? Use worksheet "Annuity-PV".
Transcribed Image Text:2. An annuity pays $80.00 each period for 5 periods. For these cash flows, the appropriate discount rate/period is 6.0%. What is the present value of this annuity? Use worksheet "Annuity-PV".
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage