- Compute the present value of a $5,500 deposit in year 1, and another $5,000 deposit at the end of year 4 using an 8 percent interest rate.
- True or False: Net present value is defined as the difference between the present value of the investment’s net cash inflows and the investment’s initial cost.
- What is the present value of a $570 payment in three years when the discount rate is 7 percent? a. $609.90 b. $570.00 c. $465.29 d. $530.10
- Compute the present value of a $1,850 payment made in 8 years when the discount rate is 10 percent. (Do not round intermediate calculations and round the final answer to 2 decimal places.)