Let's break down your question step-by-step. --- ### a. Fill in the following table from Appendix B. Since the actual table that needs to be filled is not provided in your screenshot, but Appendix B (Present Value Table) is visible, I'll explain **how to use the table** and give an example: #### **How to Use the Present Value Table (Appendix B):** - **Rows:** Represent the number of periods (years, months, etc.). - **Columns:** Represent the discount rate (interest rate). - **Value:** The factor you multiply by a future cash flow to get its present value. #### **Example:** Suppose you want the present value factor for 5 years at a 10% discount rate: - Find row for **5** periods. - Move to the column for **10%**. - The intersection gives the present value factor. (From the image, this is **0.621**.) **If your table requires you to fill in different periods and rates, use this method for each cell.** --- ### b. Does the choice between a low or a high discount rate have a greater impact on short-term or long-term cash flows? **Explanation:** - **Short-term cash flows:** Present value is less sensitive to changes in the discount rate because there are fewer periods for interest to compound. - **Long-term cash flows:** Present value is **more sensitive** to changes in the discount rate because the effect of discounting compounds over more periods. **Example from the table:** - For 1 period at 5%: PV factor ≈ 0.952 - For 1 period at 20%: PV factor ≈ 0.833 - Difference = 0.119 - For 10 periods at 5%: PV factor ≈ 0.614 - For 10 periods at 20%: PV factor ≈ 0.162 - Difference = 0.452 **The difference is much larger for long-term cash flows.** --- ### **Final Answer:** **The choice between a low or a high discount rate has a greater impact on long-term cash flows.** --- #### **Summary Table Example** | Period | 5% | 10% | 20% | |--------|------|------|------| | 1 | 0.952| 0.909| 0.833| | 5 | 0.784| 0.621| 0.402| | 10 | 0.614| 0.386| 0.162| - As you can see, the difference between discount rates **increases** as the period increases. --- **If you have a specific table to fill, let me know the periods and rates, and I can fill it for you!**