ACC 206 Week 5 Chapter 8 Exercise 1 Basic present value calculations

Chapter 8 Exercise 1: Basic present value calculations 

Calculate the present value of the following cash flows, rounding to the nearest dollar:

1. a.       A single cash inflow of $12,000 in five years, discounted at a 12% rate of return.
2. b.      An annual receipt of $16,000 over the next 12 years, discounted at a 14% rate of return.
3. c.       A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return.
4. d.      An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4.

The company has a 16% rate of return.