Compute the present value of Rs. 1000 receivable 6 years thus if the discount rate is 10 percent.

Solution: The present value is computed as follows: PV_kn = FV_n . PVIF_k,n

= 1,000. (0.5645)

= 564.5

Posted Date: 4/9/2013 2:37:49 AM | Location : United States

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