Question

In: Accounting

Present and future value tables of $1 at 9% are presented below.     PV of $1...

Present and future value tables of $1 at 9% are presented below.
   

PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1
1 0.91743 1.09000 0.91743 1.0900 1.0000
2 0.84168 1.18810 1.75911 2.2781 2.0900
3 0.77218 1.29503 2.53129 3.5731 3.2781
4 0.70843 1.41158 3.23972 4.9847 4.5731
5 0.64993 1.53862 3.88965 6.5233 5.9847
6 0.59627 1.67710 4.48592 8.2004 7.5233

  
Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,800 at the end of each of the next five years and a lump sum receipt of $4,300 at the end of the sixth year. The total present value of these payments if interest is at 9% is:

Solutions

Expert Solution

Total Value of Present Value of these receipts is

$ 12,556 ($ 12,555.73 rounded off to $ 12,556).

Detailed answer is attached as images below:


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