Determine the present value of $200,000 to be received at the end of each of four years,
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 of $1 table in Exhibit 5.
b. By using the present value of an annuity of $1 table in Exhibit 7.
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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Related Book For 
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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