Find the present value of each of the future cash flows

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Reference no: EM133238451

Question 1 - Use the PV command to find the present value of each of the following future cash flows at a discount rate of 10% per year, compounded monthly except Part C.

a. Monthly payments of $1,500 at the beginning of each month for the next six years

b. Monthly payments of $1,500 at the end of each month for the next six years.

c. Year-end receipts of $5,000 for each of the next five years assuming annual compounding.

Question 2 - You are provided with the following four cash flows:

Option A: $20,000 received 5 years from now. Interest is compounded annually.

Option B: $3,000 received at the end of each year for the next 5 years. Interest is compounded annually.

Option C: $260 received at the end of each month for the next 5 years. Interest is compounded monthly.

Option D: $5,000 received at the end of the first year, $4,000 received at the end of the second years, $3,000 received at the end of the third year, $2,000 received at the end of the fourth year, and $1,000 received at the end of the fifth and final year. Interest is compounded annually.

Compute the Present Values assuming a Discount Rate of money is 6% per year.

Reference no: EM133238451

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