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B13.03
Review the discussion on present value from the textbook, and complete the following
requirements (you will find it helpful to access the present value tables hyperlinked within
the online version of the textbook).
(a)
Prepare basic calculations showing the current value of a $25,000 sum to be
received in 4 years.
You may assume that 6% is the appropriate discount rate.
For
this requirement, do not refer to the present value table.
(b)
Verify your answer to part (a) by utilizing the appropriate present value factor from the
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Unformatted text preview: applicable table. (c) Construct a table of basic calculations showing how much an annuity of $25,000 received at the end of each year for four years is worth today. Assume a 6% discount rate. For this requirement, you may refer to the present value table for $1 (but, do not utilize the annuity table). (d) Verify your answer to part (c) by utilizing the annuity present value factor from the applicable table....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
 Spring '11
 hudack
 Accounting

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