MICROECONOMICS
5th Edition
ISBN: 9781319395018
Author: KRUGMAN
Publisher: MAC HIGHER
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Chapter 9A, Problem 3P
To determine
The questions by considering the situation given.
Concept Introduction:
Present value:
The present value is the current worth of a future sum of money on a given interest rate.
The present value is calculated by the following formula.
PV = 
= Cash flow at period 
=
= number of periods.
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