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Assuming an interest rate of 20% compounded semi-annually, calculate the present value of a $91,900 cash...

Assuming an interest rate of 20% compounded semi-annually, calculate the present value of a $91,900 cash flow that will occur eight years from now. Use the time value of money factors to answer this question

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Answer #1

Present value of cash flow = Cash flow occur eight years from now x time value of money factors @10% for 16 years

   = $91900*0.21763

   = $20000

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