What is the present value of the series of cash inflows

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Problem 1: Assume you will receive $100,000 in 15 years, and the appropriate interest rate is 7% per year. What is the present value of this cash inflow?

Problem 2: Assume you give someone $70,000. They promise to give it back to you in 5 years, along with interest at a rate of 4% per year. How much will you receive at the end?

Problem 3: Assume you will receive $3,000 every year for 3 years, and the appropriate interest rate is 6% per year. What is the present value of this series of cash inflows?

Problem 4: A firm paid $550,000 for a machine with a useful life of 20 years, at which point they expect to sell it for $50,000. Assuming they use time as their allocation basis and use straight line depreciation, how much depreciation will they record in year 2?

Reference no: EM132965351

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