Mike Derr Company expects to earn 10% per year on an investment that will pay $616,000...

Question

Question

Mike Derr Company expects to earn 10% per year on an investment that will pay $616,000 eight years from now. (PV of $1, FV of

business accounting

Answer 1

Answer #1

Explanation- Present value of investment= Future value * p(PV of a single amount)

= $616000*0.4665

= $287364

Where = In PV of $1, where n= 8

i= 10%

p =0.4665

Answer 2

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