Present value on $104 a year from now
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You expect to receive a payment of $104 one year from now. Your discount rate is 4 percent. What is the present value of the payment to be received? Suppose that the discount rate is 5 percent. What is the present value of the payment to be received?
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Solution Summary
Present value is suggested. The payment received is examined.
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Present Value = Future Cash Flow / (1 + Required Rate of ...
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