Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st Year - P300,000 2nd Year - P200,000 3rd Year - P400,000 What is the present value of the annual payments?

Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st Year - P300,000 2nd Year - P200,000 3rd Year - P400,000 What is the present value of the annual payments?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Assume the following annual payments of notes payable of Demi Company with 10% discount rate.
1st Year - P300,000
2nd Year - P200,000

3rd Year - P400,000

What is the present value of the annual payments?

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