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    Value of the money

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    XYZ company has a balloon payment coming due from a recent acquisition. They need to have $150,000 set aside 5 years from now. They can either make payments into the fund at the beginning of the year or at the end of the year. The current discount rate is 6%.

    What TVM concept (s) is represented in the situation?
    What is the value of the money represented by the situation?
    How did you arrive a the value?

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    https://brainmass.com/business/annuity/value-money-non-current-liabilities-87588

    Solution Preview

    XYZ company has a balloon payment coming due from a recent acquisition. They need to have $150,000 set aside 5 ...

    Solution Summary

    This discusses the concepts related to value of the money.

    $2.19

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