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Mandarinka [93]
2 years ago
9

If I will receive a payment of $121 two years from now and the annual interest rate is 10 percent, the present value of the paym

ent is:

Business
1 answer:
Elena-2011 [213]2 years ago
4 0

Answer:

$100

Explanation:

The present value of a cash flow can be found by discounting the cash flow at the annual interest rate.

The formula for finding present value can be found in the attached image.

The present value can be calculated using a financial calculator.

Cash flow in year one = 0

Cash flow in year two = $121

Discount rate = 10%

Present value = $100

I hope my answer helps you

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Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a red
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$5.74

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Cyclical unemployment is caused by business cycle fluctuations. reducing international trade barriers, which causes some industr
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In a merger or acquisition, an asset should be acquired if it: is a firm in the same line of business in which the acquirer has
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It generates a positive net present value to the shareholders of an acquiring firm.

<h3>Why Do Companies Merge With or Acquire Other Companies?</h3>

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  • A merger is the joining of two companies in which one of the companies ceases to exist after being absorbed by the other.

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brainly.com/question/14195407

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