Question 2: What must be the cash flow in year 4 if the net present.worth of the following cashflow is $2000, when i 5%% Fill the blank space.If Pw oooYearCash FlowWhen 1: 57on n-4-35000then what's P-?+2000+30001, 45. 10 Y $8,137.414.+60006.+80007+100008.+120002.in

Calcution of Cash flow of year 4 is as follows:

Question 2: What must be the cash flow in year 4 if the net present.worth of the following cash flow is $2000, when i 5%a. Fill the blank space. If Pw ooo Year Cash Flow When 1: 57 on n-4 -35000 then what's P-? 7. +2000 +3000 4. +6000 6. +8000 7 +10000 +12000 2. in

Question 2: What must be the cash flow in year 4 if the net present.worth of the following cash flow is $2000, when i 5%a. Fill the blank space. If Pw ooo Year Cash Flow When 1: 57 on n-4 -35000 then what's P-? 7. +2000 +3000 4. +6000 6. +8000 7 +10000 +12000 2. in

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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