Question
4. A company expects to generate cash revenues of $20,000 over the next five years. Calculate the present value of the earnings using the table
4.
A company expects to generate cash revenues of $20,000 over the next five years. Calculate the present value of the earnings using the table below if there is a 10% interest rate.
Present Value of an Annuity of $1 at Compound Interest
Year10%12%15%
10.9090.8930.870
21.7361.6901.626
32.4872.4022.283
43.1703.0372.855
53.7913.6053.353
64.3554.1113.785
74.8684.5644.160
85.3354.9684.487
95.7595.3284.772
106.1455.6505.019
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
