Discounting Cash Flows Determine the Present Value of the Following Cash Flows Discounted

question 65

Essay

Discounting cash flows
Determine the present value of the following cash flows discounted at an annual rate of 10%:
(a)$96,000 to be received five years from today (the present value of $1 at a 10% compound interest rate for five years is 0.621): $________
(b)$37,000 to be received annually for five years (the present value of $1 at 10% received annually for five years is 3.791): $________
(c)$58,000 to be received annually for six years,with an additional $16,000 salvage value to be received at the end of the sixth year (the present value of $1 at 10% received annually for six years is 4.355,and the present value of $1 due six years hence at 10% is 0.564): $________

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Definitions:

Leukocytes (WBC)

White blood cells that are part of the immune system, protecting the body against both infectious disease and foreign invaders.

Fibrinogen

A soluble plasma glycoprotein that is converted by thrombin into fibrin during blood clot formation.

Lymphocytes

A type of white blood cell crucial for the immune system, involved in protecting the body from infections and diseases.

Immunoglobulins

Proteins in the immune system that function as antibodies, which identify and neutralize foreign objects like bacteria and viruses.