What is the value of the payments today?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14EB: How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one...
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13. You will receive 15 annual payments of $20,000. The first payment will be received 8 years
from today and the interest rate is 6 percent.
What is the value of the payments today?
Transcribed Image Text:13. You will receive 15 annual payments of $20,000. The first payment will be received 8 years from today and the interest rate is 6 percent. What is the value of the payments today?
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