Final answer:
The present value of an asset that yields $500.00 in five years and $1,000.00 in ten years with a discount rate of 6% can be calculated by finding the present values at 5 years and 10 years and summing them. None of the provided options match the correct present value.
Step-by-step explanation:
The present value of an asset can be calculated using the formula:
Present value = Future value / (1 + discount rate)n
where Future value is the amount to be received, discount rate is the interest rate, and n is the number of years.
For the given asset that yields $500.00 in five years and $1,000.00 in ten years with a discount rate of 6%, the present values can be calculated as:
Present value after 5 years:
Present value = $500 / (1 + 0.06)5 = $377.97
Present value after 10 years:
Present value = $1,000 / (1 + 0.06)10 = $558.39
Therefore, the present value of the asset is the sum of the present values at 5 years and 10 years:
Total present value = $377.97 + $558.39 = $936.36
None of the given options match this value, so none of the options provide the correct present value of the asset.