My first Magazine ACC 206 All Assignments | Page 46

Please complete the following 5 exercises below in either Excel or a
word document (but must be single document). You must show your
work where appropriate (leaving the calculations within Excel cells is
acceptable). Save the document, and submit it in the appropriate week
using the Assignment Submission button.
Chapter 8 Exercise 1:
1. Basic present value calculations
Calculate the present value of the following cash flows, rounding to the
nearest dollar:
a. A single cash inflow of $12,000 in five years, discounted at a 12%
rate of return.
b. An annual receipt of $16,000 over the next 12 years, discounted at
a 12% rate of return.
c. A single receipt of $15,000 at the end of Year 1 followed by a
single receipt of $10,000 at the end of Year 3. The company has a 10%
rate of return.
d. An annual receipt of $8,000 for three years followed by a single
receipt of $10,000 at the end of Year 4. The company has a 12% rate of
return.
Chapter 8 Exercise 4:
4. Cash flow calculationsand net present value