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The present value of the following cash flow stream is BD 5,750 when discounted at 8.75% annually. What is the present value (PV) of cash
The present value of the following cash flow stream is BD 5,750 when discounted at 8.75% annually.
- What is the present value (PV) of cash flow in year-3? (3 marks)
- What is the cash flow in year-3? (1 mark)
| Year | Cash Flow |
| 1 | BD 1,250 |
| 2 | BD 1,750 |
| 3 | ? |
| 4 | BD 2,500 |
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
