Question

$500,000 (lump sum) six years from now The required rate of return is 9%. What is the present value if he selects the third option? Round to nearest whole dollar. Present value of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 0.857 0.842 0.826 3 0.794 0.772 0.751 4 0.735 0.708 0.683 5 0.681 0.65 0.621 6 0.63 0.596 0.564 7 0.583 0.547 0.513 $250,000 $230,000 $238,400 $298,000

          $500,000 (lump sum) six years from now
The required rate of return is 9%. What is the present value if he selects the third option? Round to nearest whole dollar.
Present value of $1:
8%	9%	10%
1	0.926	0.917	0.909
2	0.857	0.842	0.826
3	0.794	0.772	0.751
4	0.735	0.708	0.683
5	0.681	0.65	0.621
6	0.63	0.596	0.564
7	0.583	0.547	0.513
$250,000
$230,000
$238,400
$298,000

500,000 (lump sum) six years from now
The required rate of return is 9%. What is the present value if he selects the third option? Round to nearest whole dollar.
Present value of1:
8% 9% 10%
1 0.926 0.917 0.909
2 0.857 0.842 0.826
3 0.794 0.772 0.751
4 0.735 0.708 0.683
5 0.681 0.65 0.621
6 0.63 0.596 0.564
7 0.583 0.547 0.513
250,000230,000
238,400298,000

Added by Ismael R.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Kinjal G

Step 1

From the table, we can see that the present value factor for 6 years at 9% is 0.564. Show more…

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Question 3: $500,000 (lump sum) six years from now at 0.05 points. The required rate of return is 9%. What is the present value if he selects the third option? Round to the nearest whole dollar. Present value of $1: 8% 9% 10% 1 0.917 0.909 2 0.826 3 0.794 0.772 0.751 4 0.735 0.708 0.683 5 0.681 0.65 0.62 6 0.596 7 0.564 20 $250,000 $230,000 $238,400 7:41 AM Sunday 4/24/2022