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Calculate the present value of the following single payments: Present value formula : PV = FV/(1+ r ) n $10,000 received five years in the
Calculate the present value of the following single payments:
Present value formula: PV = FV/(1+r)n
- $10,000 received five years in the future given a discount rate of 4%
$10,000/(1.04
- $10,000 received 10 years in the future given a discount rate of 4%
- $10,000 received five years in the future given a discount rate of 8%.How much different is the value compared with part (a)?
- $10,000 received 10 years in the future given a discount rate of 8%. How much different is the value compared with part (c)?
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To calculate the present value of the payments we can use the present value formula PV FV 1rn where ...
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Financial And Managerial Accounting The Basis For Business Decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
19th Edition
1260247937, 978-1260247930
