At the end of two years, the cash flow is $13,800. The discount (interest) rate in...
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At the end of two years, the cash flow is $13,800. The discount (interest) rate in year one is 5%, and in year 2 is 10%. What is the net present value of that cash flow? Provide two significant digits after the decimal point. (Hint: If you invested $1 at time zero, what would you have at the end of year 2? At the end of two years, the cash flow is $13,800. The discount (interest) rate in year one is 5%, and in year 2 is 10%. What is the net present value of that cash flow? Provide two significant digits after the decimal point. (Hint: If you invested $1 at time zero, what would you have at the end of year 2?
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To calculate the net present value NPV of the cash flow we need to discount each cash flow t... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
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