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If a Manager Has Determined That a Particular Piece of Capital

Question 53

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If a manager has determined that a particular piece of capital is likely to increase the cash flow of a business by $10,000 for the next five years, what is the present value of the capital at an interest rate of 10 percent? (Assume that the cash flow first increases one year from today.)

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PV = ($10,000)/(1.1)...

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