You just bought equipment from Orange Ocean Furniture. You will receive a cash rebate of $4,100 from Orange Ocean Furniture in 3 years, pay $26,500 to Orange Ocean Furniture in 8 years, receive a cash rebate of $4,200 from Orange Ocean Furniture in 12 years, and pay $4,400 to Orange Ocean Furniture in 14 years. The discount rate is 14.10 percent per year. What is the value of the cash flows associated with this transaction? Round to the nearest dollar for your answer.

To find the present value (PV) of the cash flows associated with the transaction, we can use the formula for the present value of a future cash flow:

\[
PV = \frac{C}{(1 + r)^t}
\]

Where:
- $C$ is the cash flow (positive for cash received and negative for cash paid),
- $r$ is the discount rate (14.10% or 0.141),
- $t$ is the time in years when the cash flow occurs.

Now, let’s calculate the present value of each cash flow separately:

1. **Cash rebate of $4,100 in 3 years**:
   \[
   PV_1 = \frac{4100}{(1 + 0.141)^3}
   \]

2. **Payment of $26,500 in 8 years**:
   \[
   PV_2 = \frac{-26500}{(1 + 0.141)^8}
   \]

3. **Cash rebate of $4,200 in 12 years**:
   \[
   PV_3 = \frac{4200}{(1 + 0.141)^12}
   \]

4. **Payment of $4,400 in 14 years**:
   \[
   PV_4 = \frac{-4400}{(1 + 0.141)^14}
   \]

Let’s calculate the sum of these present values to find the total present value of the cash flows.It seems like I can’t do more advanced data analysis right now. Please try again later. If you'd like, I can guide you through the manual calculations to solve this.

Let me know if you would like to proceed this way or if you have another question.

Here are some

Learn how to calculate the present value of future cash flows, including rebates and payments, with a discount rate of 14.10%. This problem involves key financial concepts such as the time value of money and the present value formula. Suitable for college-level finance students.

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