Question

Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows:
a. By successive computations, using the present value table in Exhibit 4.
b. By using the present value table in Exhibit 5.
c. Why is the present value of the four $200,000 cash receipts less than the $800,000 to be received in the future?



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  • CreatedFebruary 28, 2014
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