Present Value of an Annuity Determine the present value of $190,000 to be received at the...
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Present Value of an Annuity Determine the present value of $190,000 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. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year $ Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. $ c. Why is the present value of the four $190,000 cash receipts less than the $760,000 to be received in the future? The present value is less due to over the 4 years.
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a To calculate the present value of 190 000 to be received at the end of each of the four years using the present value of 1 table we can use the form... View the full answer
Related Book For
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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