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Compute the present value of $5,000 received in 6 years, using a discount rate of 2%. Equation 4.14: PVO also expressed as: = FV

Summarize how the rate (r), the time period (n), and the amount of the cash flow or value used in the

Compute the present value of $5,000 received in 6 years, using a discount rate of 2%. Equation 4.14: PVO also expressed as: = FV (1+r) Summarize how the rate (r), the time period (n), and the amount of the cash flow or value used in the equation impacts the conclusion. Compare how the rate (r) impacts the value in a present value problem to a future value problem.

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