Calculate the total present value of the following cash flow amounts received at the end of each year. The interest rate is 10%. (Round up your answer to the nearest Rand) Year Cash flow 1 R3 000 2 R2 000 3 R5 000 se the following tables, containing the discounting factors, as needed for this question: Discounting factors to calculate present values Periods 5% 10% 15% 1 0,9524 0,9091 0,8696 2 0,9070 0,8264 0,7561 3 0,8638 0,7513 0,6575 4 0,8227 0,6830 0,5718 5 0,7835 0,6209 0,4972 6 0,7462 0,5645 0,4323 Discounting factors to calculate future values Periods 5% 10% 15% 1 1,0500 1,1000 1,1500 2 1,1025 1,2100 1,3225 3 1,1576 1,3310 1,5209 4 1,2155 1,4641 1,7490 5 1,2763 1,6105 2,0114 6 1,3401 1,7716 2,3131
Calculate the total present value of the following cash flow amounts received at the end of each year. The interest rate is 10%. (Round up your answer to the nearest Rand) Year Cash flow 1 R3 000 2 R2 000 3 R5 000 se the following tables, containing the discounting factors, as needed for this question: Discounting factors to calculate present values Periods 5% 10% 15% 1 0,9524 0,9091 0,8696 2 0,9070 0,8264 0,7561 3 0,8638 0,7513 0,6575 4 0,8227 0,6830 0,5718 5 0,7835 0,6209 0,4972 6 0,7462 0,5645 0,4323 Discounting factors to calculate future values Periods 5% 10% 15% 1 1,0500 1,1000 1,1500 2 1,1025 1,2100 1,3225 3 1,1576 1,3310 1,5209 4 1,2155 1,4641 1,7490 5 1,2763 1,6105 2,0114 6 1,3401 1,7716 2,3131
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
Related questions
Question
Calculate the total present value of the following cash flow amounts received at the end of each year. The interest rate is 10%. (Round up your answer to the nearest Rand)
|
Year |
Cash flow |
|
1 |
R3 000 |
|
2 |
R2 000 |
|
3 |
R5 000 |
se the following tables, containing the discounting factors, as needed for this question:
Discounting factors to calculate present values
|
Periods |
5% |
10% |
15% |
|
1 |
0,9524 |
0,9091 |
0,8696 |
|
2 |
0,9070 |
0,8264 |
0,7561 |
|
3 |
0,8638 |
0,7513 |
0,6575 |
|
4 |
0,8227 |
0,6830 |
0,5718 |
|
5 |
0,7835 |
0,6209 |
0,4972 |
|
6 |
0,7462 |
0,5645 |
0,4323 |
Discounting factors to calculate future values
|
Periods |
5% |
10% |
15% |
|
1 |
1,0500 |
1,1000 |
1,1500 |
|
2 |
1,1025 |
1,2100 |
1,3225 |
|
3 |
1,1576 |
1,3310 |
1,5209 |
|
4 |
1,2155 |
1,4641 |
1,7490 |
|
5 |
1,2763 |
1,6105 |
2,0114 |
|
6 |
1,3401 |
1,7716 |
2,3131 |
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