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of the cost of capital is 15%, what is the PV of $262 paid in year 7? (Round your answer to 2 decimal pla Present value eBook
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Answer #1

Answer is $98.50

Future Value = $262
Cost of Capital = 15%
Period = 7 years

Present Value = Future Value / (1 + Cost of Capital)^Period
Present Value = $262 / 1.15^7
Present Value = $98.50

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