Daniel Jackson has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,520, $7,570, $9,370, $12,560, and $11,660. If the appropriate discount rate is 7.910 percent, what is the cost in today’s dollars of the equipment Daniel purchased today? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
Present value=Cash flows*Present value of discounting factor(rate%,time period)
=10,520/1.0791+7,570/1.0791^2+9,370/1.0791^3+12,560/1.0791^4+11,660/1.0791^5
which is equal to
=$40938.14(Approx).
Daniel Jackson has just purchased some equipment for his landscaping business. For this equipment he must...
Daniel Jackson has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,520, $7,570, $9,370, $12,560, and $11,660. If the appropriate discount rate is 7.910 percent, what is the cost in today's dollars of the equipment Daniel purchased today? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) Present value $
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