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Longhorn Industries desires a 10% return on investments and the cash to be received in two years is $100,000. Determine the present value of the
Longhorn Industries desires a 10% return on investments and the cash to be received in two years is $100,000. Determine the present value of the $100,000 (which will be the amount the company will be willing to pay today), using the following partial table of present value of $1 at compound interest:
Year | 6% | 10% | 12% |
1 | .943 | .909 | .893 |
2 | .890 | .826 | .797 |
3 | .840 | .751 | .712 |
4 | .792 | .683 | .636 |
Group of answer choices
$90,900
89,000
$82,600
$94,300
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