Calculations: Present Values and Future Values
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1) Present Values: Compare the present value of a $100 cash flow for the following combination of discount rates and times:
a. r= 8 percent, t = 10 years
b. r= 8 percent, t = 20 years
c. r= 4 percent, t = 10 years
d. r= 4 percent, t = 20 years
2) Future Value: Compute the future value of a $100 cash flow for the same combination's of rate and time in the above problem
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This solution is comprised of a detailed explanation to compute the present value and future value of a $100 cash flow for the same combination's of rate and time in the given problem.
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Present Values and Future Values
Present Values- Compare the present value of a $100 cash flow for the following combination of discount rates and times:
a. r= 8 percent, t = 10 years
b. r= 8 percent, t = 20 years
c. r= 4 percent, t = 10 years
d. r= 4 percent, t = 20 years
a. r= 8 percent, t = 10 ...
Purchase this Solution
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