What is the present value of $8,000 to be received at the end of 6 years if the required rate of return is 15%? Follow

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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What is the present value of $8,000 to be received at the end of 6 years if the required rate of return is 15%?

Following is a table for the present value of $1 at compound interest:

Year 15%
1 0.870
2 0.756
3 0.658
4 0.572
5 0.497
6 0.432
7 0.376
8 0.327
9 0.284
10  0.247

Following is a table for the present value of an annuity of $1 at compound interest:

Year 15%
1 0.870
2 1.626
3 2.283
4 2.855
5 3.353
6 3.785
7 4.160
8 4.487
9 4.772
10  5.019

 

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