31) If the single amount of $2000 is to be received in 3 years and discounted...

Question

Question

31) If the single amount of $2000 is to be received in 3 years and discounted at 8%, its present value is

$1899.

$1669.

$1889.

$1588.

business accounting

Answer 1

Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=2000/1.08^3

=2000*0.793832241

=$1588(Approx).

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Answer 2

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