Cash flow End of year Amount Appropriate required return 1 0 2 0 3 0 4 to 15 0 4% 16 120000 a) Find the value of the bellow bond in order to assist ne with the investment decision
Cash flow
End of year Amount Appropriate required return
1 0
2 0
3 0
4 to 15 0 4%
16 120000
a) Find the value of the bellow bond in order to assist ne with the investment decision
The value of money today that is received to pay in some future by considering the discount rate is referred to as present value
it helps the management in various decisions making
if the present value is less as compared to the amount received in the future, then the investment decisions are referred to as financially viable.
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