The net value of the payments vs. receipts in today's dollars is ($11,102).
<h3>What is the present value?</h3>
The present value of future cash flows is the current value or the value in today's dollars. It is computed by discounting the future values at the appropriate discount rate.
The present value can be computed using the Present Value formula, an online finance calculator, or the PV factor table.
Formula
PV=FV \frac{1}{(1+r)^{n}}
PV = present value
FV = future value
r = rate of return
{n} = number of periods
<h3>Data and Calculations:</h3>
Interest rate = 12%
Period Cash flow PV Factor PV
Year 2 ($14,000) 0.797 -$11,158 ($14,000 x 0.797)
Year 3 ($16,000) 0.712 -$11,392 ($16,000 x 0.712)
Year 4 $18,000 0.636 $11,448 ($18,000 x 0.636)
Net present value of cash flows -$11,102
Thus, the net value of the payments vs. receipts in today's dollars is ($11,102).
Learn more about present value at brainly.com/question/20813161
