ie Give an expression for the value, at the given valuation date, ofthe cash flow shown.121212121212annual effeatrmeyears8nate : iur

Answered: e Give an expression for the value, at…

Business

Accounting

e Give an expression for the value, at the given valuation date, of the cásh flow shown.

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

ie Give an expression for the value, at the given valuation date, of
the cash flow shown.
12
12
12
12
12
12
annual effeatrme
years
8
nate : i
ur

Expert Solution

Step 1

solution :

the given question is related to the concept of time value of money

The future cash flows are given and we need to find out the present value

To find out the present value we need to discount the future cash flows

Let us build a table of given cash flows

Year	Cash flows
2	12
3	12
4	12
5	12
8	12
9	12

Annual effective rate = i

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