Compute the present value of $5,000 received in 6 years, using a discount rate of 2%....
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Compute the present value of $5,000 received in 6 years, using a discount rate of 2%. Equation 4.14: PVO also expressed as: = FV₂ × (1+r) • Summarize how the rate (r), the time period (n), and the amount of the cash flow or value used in the equation impacts the conclusion. • Compare how the rate (r) impacts the value in a present value problem to a future value problem. Compute the present value of $5,000 received in 6 years, using a discount rate of 2%. Equation 4.14: PVO also expressed as: = FV₂ × (1+r) • Summarize how the rate (r), the time period (n), and the amount of the cash flow or value used in the equation impacts the conclusion. • Compare how the rate (r) impacts the value in a present value problem to a future value problem.
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Using the provided equation for present value calculation Given values FVn 5000 r2002 as a decimal n... View the full answer
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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