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Assignment 1 Problem: What is the present worth value of the cash flow diagram shown in the following figure? F-$19,000 6% P-?
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Answer #1

Answer - Present worth = $11920.83

Reason -

Present value = future value * Present value discount factor, 6%, 8th year

Present value = 19000 * 0.6274123713

Present value = 11920.8350547 or $11920.83

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