A contract will produce cash flows on 4 different dates. The cash inflows are: $1000 after...
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A contract will produce cash flows on 4 different dates. The cash inflows are: $1000 after 1 year, $8000 after 3 years, $12000 after 7 years, and 10000 after 10 years. The required rate of return is 8.5% pa. a. Calculate the present value b. Calculate the terminal value A contract will produce cash flows on 4 different dates. The cash inflows are: $1000 after 1 year, $8000 after 3 years, $12000 after 7 years, and 10000 after 10 years. The required rate of return is 8.5% pa. a. Calculate the present value b. Calculate the terminal value
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a To calculate the present value PV of these cash flows you can use the formula for the present valu... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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