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Calculate the total present value of the following cash flow amounts received ...
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Calculate the total present value of the following cash flow amounts received at the end of each year. The interest rate is 10%. (Round up your answer to the nearest Rand)
Year
|
Cash flow
|
1
|
R3 000
|
2
|
R2 000
|
3
|
R5 000
|
Use the following tables, containing the discounting factors, as needed for this question:
Discounting factors to calculate present values
Periods
|
5%
|
10%
|
15%
|
1
|
0,9524
|
0,9091
|
0,8696
|
2
|
0,9070
|
0,8264
|
0,7561
|
3
|
0,8638
|
0,7513
|
0,6575
|
4
|
0,8227
|
0,6830
|
0,5718
|
5
|
0,7835
|
0,6209
|
0,4972
|
6
|
0,7462
|
0,5645
|
0,4323
|
Discounting factors to calculate future values
Periods
|
5%
|
10%
|
15%
|
1
|
1,0500
|
1,1000
|
1,1500
|
2
|
1,1025
|
1,2100
|
1,3225
|
3
|
1,1576
|
1,3310
|
1,5209
|
4
|
1,2155
|
1,4641
|
1,7490
|
5
|
1,2763
|
1,6105
|
2,0114
|
6
|
1,3401
|
1,7716
|
2,3131
|