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Exercise 6-17(Algo) Present value calculations Appendix LO 6-10 Using a present value table...

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Accounting

Exercise 6-17(Algo) Present value calculations Appendix LO 6-10
Using a present value table (Table 6-4 and Table 6-5), calculate the present value for the following:
Note: Use the appropriate value(s) from the tables provided and final answers to the nearest whole dollar.
Required:
a. A car down payment of $9,600 that will be required in two years, assuming an interest rate of 10%.
b. A lottery prize of $20.4 million to be paid at the rate of $1,020,000 per year for 20 years, assuming an interest rate of 10%.
c. The same annual amount as in part b, but assuming an interest rate of 14%.
d. A financing lease obligation that calls for the payment of $30,000 per year for 10 years, assuming a discount rate of 8%.
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