Question
A company wants their CEO to retire. It offers the CEO a cash payment once a year for the next five years. The first payment
A company wants their CEO to retire. It offers the CEO a cash payment once a year for the next five years. The first payment would be Kshs. 20,000 one year from today. The amount of payment will increase by 10% each successive year. Assuming a discount rate of 12%, 1) What is the present value of the cash flow? 2) What is the future vale of the cash flow?
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Financial and Managerial Accounting
Authors: John J Wild, Ken W. Shaw
8th edition
1260247856, 978-1260247855
