You calculate the Net Present Value of a 5 year cash flow using a discount rate...
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You calculate the Net Present Value of a 5 year cash flow using a discount rate of 8%. Demonstrate that if you accumulate the same cash flow at 8% and discount the result back to period 0, then the answer will be the same. You calculate the Net Present Value of a 10 year cash flow using a discount rate of 12%. Demonstrate how you would prove your answer is correct. You may use alternative approaches to achieve your proof. You calculate the Net Present Value of a 5 year cash flow using a discount rate of 8%. Demonstrate that if you accumulate the same cash flow at 8% and discount the result back to period 0, then the answer will be the same. You calculate the Net Present Value of a 10 year cash flow using a discount rate of 12%. Demonstrate how you would prove your answer is correct. You may use alternative approaches to achieve your proof.
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Part 1 NPV Calculation with 8 Discount Rate 5year cash flow Cash Flows 1000 for 5 years Discount Rat... 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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