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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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Essentials of Business Law

Authors: Anthony Liuzzo

9th edition

007802319X, 978-0078023194

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