Time value of money pv-fv

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Reference no: EM1327379

1) If company B has $100,000 cash today, and invested it at a rate of 10% per year for two years, how much will they have in two years?

2) If Company A offers to pay Company B $121,000 in two years, what is the PV of that $121,000 to Company B?

3) What are the implications of these two calculations?

Reference no: EM1327379

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