Score: 0 of 1 pt 10 of 15 (5 complete) Score: 13.33%, 2 .. roblem 3.LO3.11 (simi

Question

Score: 0 of 1 pt 10 of 15 (5 complete) Score: 13.33%, 2 .. roblem 3.LO3.11 (similar to Question Help * Maria expects to receive a payment of $35,000 in 6 years. At a discount rate of 7%, what is the present value of this payment? What is the present value of the payment? (Round to the nearest cent.) core: 0 of 1 pt Problem 3.LO3.12 (similar to) Find the present value of the following mixed stream of cash flows (as of Year 0) using a 11 of 15 (5 complete) HW Score: 13.33%, ; Question Help discount rate of 8%. Assume the cash flows are received at the end of each year. Cash Flow Stream Year 7,000 5,000 3,000 Cash Flow Stream Year 7,000 5,000 3,000 Present Value (S)- (Round to the nearest cent)

Explanation / Answer

Q.11
Present value of 36000 to be received in 6 years
=FV*(1/(1+i)^n)
=36000*(1+.07)^6
=36000 * PVF of 7% at year 6
=36000* .666
=23988

Q.12

PV of series of payment
=(7000*PVF of 8% year1)+(5000*PVF of 8% year2)+(3000*PVF of 8% year3)
=(7000*.926)+(5000*.857)+(3000*.794)
=6482+4285+2382
=13149

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