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Calculate the aggregate present value

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Reference no: EM131164758

Instructions:

  • Show complete calculations and all formulae where required.

Time Value of Money

Question:

Greme Smith has to receive $200,000 five years from now and $100,000 seven years from now from an investment he has made. The nominal rate of interest prevailing is 12% per annum. Calculate the aggregate present value of both future cash flows for Mr. Smith. 

Reference no: EM131164758

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