Exercise 10-2A (Algo) Determining the present value of a lump-sum future cash receipt LO 10-1Larry Mattingly turned 20 years old today His grandfather had established a trust fund that will pay him $85.000 on his next birthdayHowever Larry needs money today to start his college education, and his father is willing to help. M. Mattingly has agreed to giveLarry the present value of the $85.000 future cash inflow, assuming a 8 percent rate of return. EVofS1 and EVASD (Useappropriate fector(s) from the tables previded.)Required. Determine the amount of cash that Lary Mattingly's father should give him. (Round your final answer to the nearest whole dollervalue.)

Present value or PV is the discounted worth of a future cash flow taking into consideration the time…

Answered: Larry Mattingly turned 20 years old…

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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