Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 3, Problem 4AP
Use a 5 percent discount rate to compute the
- a. $6,200 received now (year 0), $1,890 paid in year 3, and $4,000 paid in year 5.
- b. $10,000 paid now (year 0), $12,690 paid in year 2, and $31,000 received in year 8.
- c. $20,000 received now (year 0), $13,500 paid in year 5, and $7,500 paid in year 10.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the value on 1/1/16 of the following cash flows? Use a 10% discount rate, and round your answer to the nearest $1.00.
Date Cash Received
1/1/18
1/1/19
1/1/20
1/1/21
1/1/22
OA. $1,065
OB. $1,500
OC. $880
OD. $968
Amount of Cash
$100
$200
$300
$400
$500
What is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a discount rate of 13%? (Round your final
answers to 2 decimal places.)
a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question.
b. Use the appropriate built-in function in Excel to answer the above question.
a.
b.
PV of annuity
PV of annuity
What is the value on 1/1/95 of the following cash flows?
Date Cash Received Amount of Cash
12/31/96 $100
12/31/97 $200
12/31/98 $100
12/31/99 $100
12/31/00 $100
Use a 10% discount rate and round your answer to the nearest $1.
Chapter 3 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 3 - Does the NPV of future cash flows increase or...Ch. 3 - Explain the relationship between the degree of...Ch. 3 - Does the after-tax cost of a deductible expense...Ch. 3 - Prob. 4QPDCh. 3 - Prob. 5QPDCh. 3 - Prob. 6QPDCh. 3 - Prob. 7QPDCh. 3 - Which type of tax law provision should be more...Ch. 3 - In the U.S. system of criminal justice, a person...Ch. 3 - Identify two reasons why a firms actual marginal...
Ch. 3 - Prob. 11QPDCh. 3 - Prob. 12QPDCh. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Use a 5 percent discount rate to compute the NPV...Ch. 3 - Consider the following opportunities: Opportunity...Ch. 3 - Prob. 6APCh. 3 - Refer to the income tax rate structure in the...Ch. 3 - Prob. 8APCh. 3 - Company N will receive 100,000 of taxable revenue...Ch. 3 - Prob. 10APCh. 3 - Investor B has 100,000 in an investment paying 9...Ch. 3 - Firm E must choose between two alternative...Ch. 3 - Company J must choose between two alternate...Ch. 3 - Firm Q is about to engage in a transaction with...Ch. 3 - Corporation ABC invested in a project that will...Ch. 3 - Prob. 16APCh. 3 - Investor W has the opportunity to invest 500,000...Ch. 3 - Prob. 18APCh. 3 - Prob. 19APCh. 3 - Prob. 20APCh. 3 - Prob. 21APCh. 3 - Prob. 1IRPCh. 3 - Firm V must choose between two alternative...Ch. 3 - Prob. 3IRPCh. 3 - Refer to the facts in problem 3. Company WB is...Ch. 3 - Prob. 5IRPCh. 3 - Prob. 6IRPCh. 3 - Prob. 7IRPCh. 3 - Prob. 8IRPCh. 3 - Prob. 9IRPCh. 3 - Prob. 1TPCCh. 3 - Firm D is considering investing 400,000 cash in a...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the PV of $200 received in: a. Year 8 (at a discount rate of 4%)? b. Year 8 (at a discount rate of 16%)? c. Year 13 (at a discount rate of 28%)? d. Each of years 1 through 3 (at a discount rate of 15%)? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decim. a. Present value b. Present value c. Present value d. Present valuearrow_forwardConvert the following cash flows to a uniform payment series, where n=3 starting at year 3 and i=3%. $1500 $1250 $1250 $1000 $500 $200 $200 3 4 5arrow_forwardThe appropriate discount rate for the following cash flows is 7.58 percent per year: Year 1 2 3 4 Cash Flow $2,520 $0 $3,960 $2,210 What is the present value of the cash flows as of Year O? $7,025.36 $7,537.38 $6,941.87 $7,321.33 $7,172.91arrow_forward
- You are given the following cash flows. What is the present value (t = 0) if the discount rate is 12 percent? 0 1 2 3 4 5 6 (Periods) 0 2,000 2,000 2,000 0 -2,000 -2,000 (cash flows) Select one: a. $4,289 b. $2,804 c. $2,656 d. $4,804 e. $5,302arrow_forwardSingle Cash Flow Present Value Inputs Single Cash Flow $1,000 Discount Rate/Period 6% Number of Periods 5 Present Value using a Time Line Period 1 2 3 4 Cash Flows Present Value of Each Cash Flow Present Value Present Value using the Formula Present Value Present Value using the PV Function Present Valuearrow_forwardCalculate the present value of the following net cash flows if the discount rate is 12%. Year Cash Flow 1-5 $10,000 each year 6-10 $15,000 each year 11-15 $17,000 each year a. $79,252 b. $151,400 c. $86,462 d. $144,037arrow_forward
- What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals.Year 0 cash flow = -116,000Year 1 cash flow = 28,000Year 2 cash flow = 43,000Year 3 cash flow = 38,000Year 4 cash flow = 41,000Year 5 cash flow = 40,000Year 6 cash flow = 37,000arrow_forwardThe appropriate discount rate for the following cash flows is 7 percent compounded quarterly. Year Cash Flow 1 $ 700 2 800 3 0 4 1,100 What is the present value of the cash flows? Multiple Choice $2,139.12 $ 815.18 $2,192.14 $2,182.78 $2,226.43arrow_forwardFind cash conversion cycle. Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 46 days b. 31 days c. 42 days d. 38 days e. 34 daysarrow_forward
- What is the present value of a stream of 5 end-of-year annual cash receipts of $1,000 given a discount rate of 13%? (Round your final answers to 2 decimal places.) a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question. b. Use the appropriate built-in function in Excel to answer the above question.arrow_forwardCompute the rate of return for the following cash flows: Year Cash Flow 1-5 $1,512 6-10 $29,256arrow_forwardConstruct a cash flow diagram to find the presentworth in year 0 of a $400 expenditure in year 3, a$900 receipt in year 4, and $100 expenses in eachof years 5 and 6 at an interest rate of 15% per year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Debits and credits explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=n-lCd3TZA8M;License: Standard Youtube License