which of the following shows the correct procedure to find the Present value of $100,000 received at the end of 5 years, if the discount rate is 4%?
Present value of cash flow | = | Future value of cash flow | * | Present value of 1 | ||
= | $ 1,00,000 | * | 0.821927 | |||
= | $ 82,192.71 | |||||
Working: | ||||||
Present value of 1 | = | (1+i)^-n | Where, | |||
= | (1+0.04)^-5 | i | = | 4% | ||
= | 0.821927107 | n | = | 5 |
which of the following shows the correct procedure to find the Present value of $100,000 received...
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