Calculate to present value of the following future cash flows. Use 6% discount rate for your calculations.20 000 dollars two years from today,%800 dollars paid annually, every year until forever.1 000 dollars paid annually, every year for 20 years.25 000 dollars paid three years from today.

Time value of money (TVM) means that the amount of money received in the present period will have…

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Calculate to present value of t

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

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Question

Calculate to present value of the following future cash flows. Use 6% discount rate for your calculations.
20 000 dollars two years from today,
%
800 dollars paid annually, every year until forever.
1 000 dollars paid annually, every year for 20 years.
25 000 dollars paid three years from today.

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