what is its present value?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 7MC
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Use the table below to answer the following questions:   
           
  Present Value of 1 Factor Present Value of an Annuity of 1 Factor  
Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr  
1 0.9578 0.9174 0.9578 0.9174  
2 0.9174 0.8417 1.8753 1.7591  
3 0.8787 0.7722 2.7540 2.5313  
4 0.8417 0.7084 3.5957 3.2397  
5 0.8062 0.6499 4.4019 3.8897  
6 0.7722 0.5963 5.1740 4.4859  
Assumption: Required annual effective rate (EPR) of return is 9%.

 

If an investment pays you $54,000 every  6 months for 3 years, what is its present value?

 

$279,396
$250,193
$273,380
$291,703
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