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Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 0 3 Cash Flow, $ 19,000 38,500 14 Then-current 22,000 Then-current Today's 28,500 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Expressed As Today's the present worth of the estimated cash flows.

Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 0 3 Cash Flow, $ 19,000 38,500 14 Then-current 22,000 Then-current Today's 28,500 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Expressed As Today's the present worth of the estimated cash flows.

FINANCIAL ACCOUNTING
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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/transcript Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 10 3 14 Cash Flow, $ 19,000 38,500 22,000 28,500 7 Skip to question Expressed As Today's Then-current Then-current Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $91451.92
Transcribed Image Text:/transcript Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 10 3 14 Cash Flow, $ 19,000 38,500 22,000 28,500 7 Skip to question Expressed As Today's Then-current Then-current Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $91451.92
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