Present Value Tables
Present Value of $1 Present Value of an Annuity of $1

question 34

Multiple Choice

Present Value Tables
Present value of $1 $$\begin{array} { l l l l l l l } \text { Periads } & 4 \% & 6 \% & 8 \% & 10 \% & 12 \% & 14 \% \\1 & 0.962 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 \\2 & 0.925 & 0.890 & 0.857 & 0.826 & 0.797 & 0.769 \\3 & 0.889 & 0.840 & 0.794 & 0.751 & 0.712 & 0.675 \\4 & 0.855 & 0.792 & 0.735 & 0.683 & 0.636 & 0.592 \\5 & 0.822 & 0.747 & 0.681 & 0.621 & 0.567 & 0.519 \\6 & 0.790 & 0.705 & 0.630 & 0.564 & 0.507 & 0.456 \\7 & 0.760 & 0.665 & 0.583 & 0.513 & 0.452 & 0.400 \\8 & 0.731 & 0.627 & 0.540 & 0.467 & 0.404 & 0.351 \\9 & 0.703 & 0.592 & 0.500 & 0.424 & 0.361 & 0.308 \\10 & 0.676 & 0.558 & 0.463 & 0.386 & 0.322 & 0.270\end{array}$$ Present value of an annuity of $1 $$\begin{array} { l l l l l l l } \text { Periads } & 4 \% & 6 \% & 8 \% & 10 \% & 12 \% & 14 \% \\1 & 0.962 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 \\2 & 1.886 & 1.833 & 1.783 & 1.736 & 1.690 & 1.647 \\3 & 2.775 & 2.673 & 2.577 & 2.487 & 2.402 & 2.322 \\4 & 3.630 & 3.465 & 3.312 & 3.170 & 3.037 & 2.914 \\5 & 4.452 & 4.212 & 3.993 & 3.791 & 3.605 & 3.433 \\6 & 5.242 & 4.917 & 4.623 & 4.355 & 4.111 & 3.889 \\7 & 6.002 & 5.582 & 5.206 & 4.868 & 4.564 & 4.288 \\8 & 6.733 & 6.210 & 5.747 & 5.335 & 4.968 & 4.639 \\9 & 7.435 & 6.802 & 6.247 & 5.759 & 5.328 & 4.946 \\10 & 8.111 & 7.360 & 6.710 & 6.145 & 5.650 & 5.216\end{array}$$
-Refer to Present Value Tables. Ginger Company is considering a project with an initial investment of $124,450 that will yield annual net cash flows of $32,000 and will be depreciated at $20,742 per year over its six-year life. What is the internal rate of return?

• A) 6%
• B) 8%
• C) 10%
• D) 14%

---

Definitions:

Procedural Memory System

A type of long-term memory responsible for knowing how to do things, also known as muscle memory, involving the performance of particular types of tasks without conscious awareness.

Connectionist Model

A computational model in cognitive science that represents mental phenomena using networks of artificial neural units, drawing inspiration from the neural structures in the brain.

Lexical Decision Task

A task in which an experimental participant is presented with letter strings and asked to judge, as quickly as possible, whether the strings form words.

Schemata

Frameworks for organizing and representing knowledge that contain roles, variables, and fixed parts.