Calculate the total present value of the following cash flow amounts received at the end of each year. The interest rate is 10%. (Round up your answer to the nearest Rand)   Year Cash flow 1 R3 000 2 R2 000 3 R5 000 se the following tables, containing the discounting factors, as needed for this question:   Discounting factors to calculate present values Periods  5% 10% 15% 1 0,9524 0,9091 0,8696 2 0,9070 0,8264 0,7561 3 0,8638 0,7513 0,6575 4 0,8227 0,6830 0,5718 5 0,7835 0,6209 0,4972 6 0,7462 0,5645 0,4323   Discounting factors to calculate future values Periods  5% 10% 15% 1 1,0500 1,1000 1,1500 2 1,1025 1,2100 1,3225 3 1,1576 1,3310 1,5209 4 1,2155 1,4641 1,7490 5 1,2763 1,6105 2,0114 6 1,3401 1,7716 2,3131

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate the total present value of the following cash flow amounts received at the end of each year. The interest rate is 10%. (Round up your answer to the nearest Rand)

 

Year

Cash flow

1

R3 000

2

R2 000

3

R5 000

se the following tables, containing the discounting factors, as needed for this question:

 

Discounting factors to calculate present values

Periods 

5%

10%

15%

1

0,9524

0,9091

0,8696

2

0,9070

0,8264

0,7561

3

0,8638

0,7513

0,6575

4

0,8227

0,6830

0,5718

5

0,7835

0,6209

0,4972

6

0,7462

0,5645

0,4323

 

Discounting factors to calculate future values

Periods 

5%

10%

15%

1

1,0500

1,1000

1,1500

2

1,1025

1,2100

1,3225

3

1,1576

1,3310

1,5209

4

1,2155

1,4641

1,7490

5

1,2763

1,6105

2,0114

6

1,3401

1,7716

2,3131

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