Reference no: EM132813418
Problem 1: What factor should you use for a ?1,000 note receivable that is collectible in five annual installments of ?200 starting one year hence?
a. Present value of 1
b. Present value of an ordinary annuity of 1
c. Present value of an annuity due of 1
d. Any of these
Problem 2: What factor should you use for a ?2,000 note receivable that is collectible in full after five years?
a. Present value of 1
b. Present value of an ordinary annuity of 1
c. Present value of an annuity due of 1
d. Any of these
Problem 3: Which of the following results to the smallest value?
a. Present value of an annuity due of 1 @12%, n=5
b. Present value of an ordinary annuity of 1 @12%, n=5
c. Present value of 1 @12%, n=5
d. Present value of 1 @14%, n=5