Determine the first year of present value of cash flow

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Reference no: EM131850340

Company A sells machinery to Company B.

Company B agrees to pay Company A $300,000 at the end of each of the next 5 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 5 years.

[3] please provide an explanation towards your calculation.

Reference no: EM131850340

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