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I need to know what I'm doing wrong. Is there a formula to figure this out? What are the steps? The problem: 1. Wasp Corporation
I need to know what I'm doing wrong. Is there a formula to figure this out? What are the steps? The problem:
1.Wasp Corporation has a loan agreement that provides it with cash today, and the company must pay $25,000 one year from today, $15,000 two years from today, and $5,000 three years from today. Wasp agrees to pay 10% interest. The following are factors from a present value table:
Periods
Interest rate 10%
1
0.9091
2
0.8264
3
0.7513
What is the amount of cash that Wasp receives today?
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