Question
Remember that the PV of an annuity equation gives the PV of the perpetuity at the time period one period before the first payment
Remember that the PV of an annuity equation gives the PV of the perpetuity at the time period one period before the first payment starts. 1. What is the PV (at Year 15) of cash flow from Year 16 to 43 (inclusive)? (Hint: # of annuity payments = (End - Beginning) + 1) 0 5% 1 2 N ... 15 16 10 ... 4.0.4 42 + 10 43 10
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Introduction to Management Accounting
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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