Tvm concept-value of money

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Reference no: EM1330548

XYZ company has a balloon payment coming due from a recent acquisition. They need to have $150,000 set aside 5 years from now. They can either make payments into the fund at the beginning of the year or at the end of the year. The current discount rate is 6%.

1. What TVM concept (s) is represented in the situation?
2. What is the value of the money represented by the situation?
3. How did you arrive a the value?

Reference no: EM1330548

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