Present value of the cash flows, Accounting Basics

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Present value of the cash flows

Problem:

Assume the appropriate discount rate for the following cash flows is 10.09 percent per year. Year Cash Flow 1 $2,300 2 2,700 3 4,900 4 5,500

Required:

Question: What is the present value of the cash flows?

Note: Show supporting computations in good form.

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Accounting Basics: Present value of the cash flows

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Accounting Basics: Present value of the cash flows

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