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netineya [11]
2 years ago
14

What is the value today of $1,300 per year, at a discount rate of 9 percent, if the first payment is received 8 years from now a

nd the last payment is received 25 years from today
Business
1 answer:
mars1129 [50]2 years ago
5 0

Answer:

$6,226.52

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow year 1 to 7 = 0

Cash flow each year from year 8 to 25 = 1300

I = 9%

PV = $6,226.52

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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MC Qu. 128 Leeks Company's product has... Leeks Company's product has a contribution margin per unit of $13.57 and a contributio
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