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Question

You will receive 5000 three years from now. The discount tate id 8 percent. What is the value of your investment two year from now

Submitted: 148 days and 23 hours ago.

Category: Finance

Value: $9

Status: CLOSED

Answer

Hello XXXXXXXXX,

Discount rate = 8%

Cash flow = 5,000

Present value of cash flow or investment two years fom now:

PV of cash flow two years from now = 5,000 x PVIF 8%, 1 year

= 5,000 x 0.92593

= $4,629.65

Accepts:
Expert:	Annie Kavitha
Pos. Feedback:	100.0 %
Answered:	6/27/2009

Lecturer

M.Com

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