In: Finance

Ambrin Corp. expects to receive $5000 per year for 10 years and
$6500 per year for the next 10 years. What is the present value of
this 20 year cash flow? Use an 12% discount rate. Use Appendix D
and Appendix B to calculate the answer. **(Round your
intermediate calculations to the nearest dollar
value.)**

**Options below:**

$40,076 |
||

$64,975 |
||

$48,550.5 |
||

none of these |

Calculation of present
value: |
|||

Time |
Cashflow |
PVF @12% |
PV |

1 | 5000 | 0.8929 |
4,464.29 |

2 | 5000 | 0.7972 |
3,985.97 |

3 | 5000 | 0.7118 |
3,558.90 |

4 | 5000 | 0.6355 |
3,177.59 |

5 | 5000 | 0.5674 |
2,837.13 |

6 | 5000 | 0.5066 |
2,533.16 |

7 | 5000 | 0.4523 |
2,261.75 |

8 | 5000 | 0.4039 |
2,019.42 |

9 | 5000 | 0.3606 |
1,803.05 |

10 | 5000 | 0.3220 |
1,609.87 |

11 | 6500 | 0.2875 |
1,868.59 |

12 | 6500 | 0.2567 |
1,668.39 |

13 | 6500 | 0.2292 |
1,489.63 |

14 | 6500 | 0.2046 |
1,330.03 |

15 | 6500 | 0.1827 |
1,187.53 |

16 | 6500 | 0.1631 |
1,060.29 |

17 | 6500 | 0.1456 |
946.69 |

18 | 6500 | 0.1300 |
845.26 |

19 | 6500 | 0.1161 |
754.69 |

20 | 6500 | 0.1037 |
673.83 |

NPV |
40,076.05 |
||

So
correct answer is $40076 |

Ambrin Corp. expects to receive $9,000 per year for 14 years and
$10,500 per year for the next 14 years. What is the present value
of this 28 year cash flow? Use an 11% discount rate. Use Appendix D
and Appendix B. (Round "PV Factor" to 3 decimal places. Round your
intermediate calculations to the nearest dollar value.)

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TLC = 6500 RV = 1200 Find VC.
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$
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$
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$
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Question 15
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