Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. determine the present value of $200,000 to be rece

Determine the present value of $200,000 to be received at the end of each of...

70.2K

Verified Solution

Question

Accounting

Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibit 8. Round to the nearest whole dollar. First year $ Second Year $ Third Year $ Fourth Year $ Total present value $ b. By using the present value table in Exhibit 10. Round to the nearest whole dollar. $ c. Why is the present value of the four $200,000 cash receipts less than the $800,000 to be received in the future? The present value is less due to ___ over the 4 years.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

A DVD rotates through and angle of 201 radians in 1 second That means it...

Statistics
1.2K views

Test the given claim. Identify the null​ hypothesis, alternative​ hypothesis, test​ statistic, P-value, and then state the...

Advance Math
1.2K views

Some say that Engineering is not a profession What is the argument they use to support...

Chemistry
1.2K views

Which scenario will result in the greatest decrease in energy for the system? (a) The system releases...

Biology
1.2K views

The nontemplate strand reads 5 ACTGGTTCA What will be the sequence of the resulting transcript...

Physics
1.2K views

A 6 volt battery of negligible internal resista resistance is connected across a uniform wire...

Physics
1.2K views

A beam of 580 nm light passes through two closely spaced glass plates as shown...

Algebra
1.2K views

Find the measure of the side of the triangle in the proportional triangles in the...

Accounting
1.2K views

Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in...

Accounting
1.2K views

Peachtree Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and...

Accounting
1.2K views

In the Assembly Department of Blue Spruce Company, budgeted and actual manufacturing overhead costs for...

Accounting
1.2K views

PLEASE HELP! Determining Cost of Land On-Time Delivery Company acquired...