Determine the first year of present value of cash flow

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Reference no: EM13987802

Company A sells machinery to Company B. Company B agrees to pay Company A $300,000 at the end of each of the next 6 years, with discount rate 6%.

Instruction :

[1] provide a clear calculation to determine the first year of Present value of cash flow

[2] provide a clear calculation for each year cash payment reduction for 6 years.

[3] please provide an explanation toward your calculation.

Reference no: EM13987802

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