Ans. Option B
Explanation and calculation:
Present value of cash flow is equal to the product of cash inflow and present value of an annuity of $1 at a particular interest rate.
Present value = Cash inflow * Present value of $1 @6%
= $49,000 * 0.94340
= $46,226.6 or $46,227 (rounded)
(rounded to nearest dollar). Use the following table, if needed. The present value of $19,000 to...
The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 0.95238 0.90703 0.86384 0.82270 0.78353 0.94340 0.89000 0.83962 0.79209 0.74726 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.909090.89286 0.82645 0.79719 0.75132 0.71178 0.68301 0.63552 0.62092 0.56743 0.56447 0.50663 0.51316 0.45235 0.46651 0.40388 0.42410 0.36061 0.38554 0.32197 0.74622 0.71068...
answer please Using the following table, what is the present value of $15,000 to be received in 10 years, if the market rate is 59 compounded annually? Periods 7% 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 0.67684 0.64461 0.61391 6% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 0.62741 0.59190 0.55840 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 10% 0.90909 0.82645 0.75132 0.68301 0.62092 0.56447 0.51316 0.46651 0.42410 0.38554
When the market rate of interest was 12%, Halprin Corporation issued $534,000, 11%, four-year bonds that pay interest annually. The selling price of this bond issue was _____. Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496...
Use the following table to answer the question. 6% Periods 5% 7% 10% 0.95238 0.94340 0.93458 0.90909 0.90703 0.89000 0.87344 0.82645 0.86384 0.83962 0.81630 0.75132 0.82270 0.79209 0.76290 0.68301 0.78353 0.74726 0.71299 0.62092 0.74622 0.70496 0.66634 0.56447 0.71068 0.66506 0.42275 0.51316 0.67684 0.62741 0.58201 0.46651 0.64461 0.59190 0.54393 0.42410 0.61391 - 0.55840 0.50835 0.38554 What is the present value of a $32,100 to be received five years, if the market rate is 6% compounded annually? Round your answer to two...
Using the following table, what is the present value of $30,000 to be received in seven years. If the market rate is 10% compounded annually Round to the nearest whole number. Periods 5% 7% 104 1 0.95238 0.94340 0.93458 0.90909 2 0.90703 0.89000 0.87344 0.82645 3 0.86384 0.83952 0.81630 0.75132 0.82270 0.79209 0.76290 0.68301 5 0.78353 0.74726 0.71299 0.62092 6 0.74622 0.70496 0.66634 0.56447 7 0.71068 0.66506 0.62275 0.51316 0.67684 0.62741 0.58201 0.46651 9 0.64461 0.59190 0.54393 0.42410 10 0.61391...
Using the following table, what is the present value of $54,900 to be received in six years, if the market rate is 7% compounded annually Round to the nearest whole number Periods 79 104 1 0.95238 0.93458 2 0.90703 0.94340 0.89000 0.83962 0.87344 0.81630 0.90909 0.82545 0.75132 0.68301 3 0.86384 4 0.82270 5 0.78353 0.79209 0.74726 0.70496 0.66506 0.62741 0.74622 0.76290 0.71299 0.66634 0.62275 0.58201 0.62092 0.56447 7 0.51316 0.71068 0.67684 8 0.46651 0.54393 0.42410 0.64451 0.61391 0.59190 0.55840 10...
Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co, issued $30,000,000 of five-year, 13% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit B and Exhibit 10. Round to the nearest dollar. b. The...
Present Value of Bonds Payable; Premium Moss Co. issued $480,000 of five-year, 11% bonds, with interest payable semiannually, at a market (effective) interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. Exhibit 5 Present Value of $1 at Compound Interest Periods NMONO 4% 47% 0.96154 0.956940 0.92456 0.915730 0.88900 0.876300 0.85480 0.838560 0.82193 0.802450 0.79031 0.767900 0.75992 0.734830 0.73069 0.703190 0.702590.672900...
Present Value of Bonds Payable; Premium Moss Co. issued $820,000 of five-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. Exhibit 5 Present Value of $1 at Compound Interest Periods 4% 4%2% 0.96154 0.956940 0.92456 0.915730 0.88900 0.876300 0.85480 0.838560 0.82193 0.802450 0.79031 0.767900 0.75992 0.734830 0.73069 0.703190 0.702590.672900 0.67556...
Present Value of Bonds Payable; Premium Moss Co. issued $710,000 of four-year, 12% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $ Exhibit 5 Present Value of $1 at Compound Interest 5% 572% 7% 10% Periods 1 2 3 4 4% 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73069 0.70259...