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Present values of several cash flows

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Compute the present value of a $270 cash flow for the following combinations of discount rates and times: (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Present Value
a. r = 12%, t = 8 years $

b. r = 12%, t = 16 years

c. r = 6%, t = 8 years

d. r = 6%, t = 16 years

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The solution discusses the present values of several cash flows.

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Present value= Future value/(1+rate of interest)^duration

  a. r = 12%, t = 8 years ...

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