Essay
The following data have been gathered for a capital investment decision.The amounts relate to a 14 percent discount factor.
a.Compute the present value of the following cash flows.Use a discount rate of 14 percent.
b.What would have been the present value of the cash flows if they were received in equal installments over the five-year period at the same discount rate?
c.If the answers to parts (a)and (b)differ,explain the reason(s)why.
Correct Answer:
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a.
b.$240,000 5 = $48,000 per year
$4...View Answer
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Correct Answer:
Verified
b.$240,000
5 = $48,000 per year$4...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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