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Questions
FINA2720.MERGED.202610 Practice with Respondus and Time Value of Money- Requires Respondus LockDown Browser
Short answer
If you receive $439 each 6 months for 1 year and the discount rate is 0.07, what is the present value?
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Standard Answer
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Approach Analysis
Here is how to approach the present value calculation for this cash flow.
First, identify the cash flows: you receive 439 every 6 months for 1 year, which means there are two payments in total (at 6 months and at 12 months).
Next, determine the appropriate per-period discount rate. If the stated discount rate is......Login to view full explanationLog in for full answers
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