Total present value of payments

Reference no: EM13150326

ABC Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $3,000 at the end of each of the next four years and a lump sum payment of $6,000 cash at the end of the fifth year.

Calculate the total present value of these payments if the interest rate is 5% compounded annually.

Reference no: EM13150326

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