Assuming that today's date is 1 January 2018, calculate the present value of each of the following:
Question:
Assuming that today's date is 1 January 2018, calculate the present value of each of the following:
(a) £50,000 to be received on 1 January 2021
(b) £100,000 to be received on 1 January 2023
(c) £10,000 to be received on I January each year from 2019 to 2022 inclusive.
Use a discount rate of 7% in each case.
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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a 1 invested at 7 per annum will become 1 107 107 107 after three years So the present va...View the full answer
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Related Book For 
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
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