For each of the following annuities, calculate the annual cash flow. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow Present Value Years Interest Rate $ 7,600.46 $ 33,100 6 10 % $ 30,700 8 8 $ 170,000 17 13 31,256.42 $ 243,300 24 12

For each of the following annuities, calculate the annual cash flow. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow Present Value Years Interest Rate $ 7,600.46 $ 33,100 6 10 % $ 30,700 8 8 $ 170,000 17 13 31,256.42 $ 243,300 24 12

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

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Question

Middle two quesions please. Thank you.

For each of the following annuities, calculate the annual cash flow. (Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Cash Flow
Present Value
Years
Interest Rate
$
7,600.46 $
33,100
6
10 %
$
30,700
8
8
$
170,000
17
13
$
31,256.42 $
243,300
24
12

Expert Solution

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The net present value is a very common and one of the most important terminologies used in accounting in finance. The net present value simply means the present value of future cash inflows reduced by future cash outflows. In modern accounting, financial reporting is based on the present value concept. Present value annuity factor and present value factor are the two most important concepts of present value.

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