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Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if: Present Value = FV after t periods
- Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if: Present Value = FV after t periods / (1+r)^t
- The interest rate is 5 percent?
Response and rationale: Present value = PV = future value /
- The interest rate is 20 percent?
Response and rationale:
- Why do your answers to (a) and (b) differ?
Response:
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-0176509736
