Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show work. A company expects to generate cash revenues of $20,000 over the next five years. Calculate the present value of the earnings using

Please show work.

A company expects to generate cash revenues of $20,000 over the next five years. Calculate the present value of the earnings using the table below if there is a 10% interest rate. Present Value of an Annuity of $1 at Compound Interest Year 10% 12% 15% 1 0.909 0.893 0.870 2 1.736 1.690 1.626 3 2.487 2.402 2.283 4 3.170 3.037 2.855 5 3.791 3.605 3.353 6 4.355 4.111 3.785 7 4.868 4.564 4.160 8 5.335 4.968 4.487 9 5.759 5.328 4.772 10 6.145 5.650 5.019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

Students also viewed these Accounting questions