Answer:
$60,936
Explanation:
Provided information,
$12,000 will be received at each year end from third year to 12th year end.
The discount rate provided = 10%
Therefore PVAF of 10% for third year end to 12th year end will be for $1
[tex]= \frac{1}{(1 + 0.10)^3} + \frac{1}{(1 + 0.10)^4} + \frac{1}{(1 + 0.10)^5} + \frac{1}{(1 + 0.10)^6} + ............. \frac{1}{(1 + 0.10)^1^2} = 5.078[/tex]
Here 0.10 = 10% discount rate
Value for $12,000 = $12,000 [tex]\times[/tex] 5.078
Present Value of $12,000 will be
= $60,936
