Calculate the present value PV (in dollars) of an investment that win be worth $1,000 at the stated interest rate after the stated amount of time. (Round your answer to the nearest cent)5 vears, depreciating 6% each yearPVSNeed Help?Wah

Present value (PV) is the current estimation of a future amount of cash or stream of income given a…

Calculate the present value PV(n dollars) of an investment that w be worth $1,000 at the stated interest rate ater the stated amount of time (Round your answer to the nearest cent) S vears, depreciating each year Need Help?

Calculate the present value PV(n dollars) of an investment that w be worth $1,000 at the stated interest rate ater the stated amount of time (Round your answer to the nearest cent) S vears, depreciating each year Need Help?

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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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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Calculate the present value PV (in dollars) of an investment that win be worth $1,000 at the stated interest rate after the stated amount of time. (Round your answer to the nearest cent)
5 vears, depreciating 6% each year
PVS
Need Help?
Wah

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