Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. a. $40,000 to be received 20 years from today. b. $24,000 to be received annually for 10 years. c. $16,000 to be received annually for five years, with an additional $20,000 salvage value expected at the end of the fifth year.

Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. $29,488 to be accumulated in 5 years; quarterly payments of $1275. %- The interest rate needed is approximately (Type an integer or decimal rounded to two decimal places as needed.)

Find the book value at the beginning and end of each year by single line, double declining balance, sum-of-the-years digits, and sinking fund at 6% methods for an asset with initail cost of $2500 and with salvage of $1100 in six years.

Assume that you purchase a property for $200,000 and it generates annual cash flows of $30,000 in years 1-3; and $45,000 in years 4&5. You are able to sell it at the end of year 5 for $400,000. Calculate the IRR for this investment property.