What is present value of total expected future cash outflow

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HIH Finance Limited estimated that the future cash outflows relating to settlement of warranty obligations would be as follows:

At the end of year 1 $60 000
At the end of year 3 $50 000
At the end of year 5 $60 000.

Problem 1: A government rate for bonds with similar terms is 12%. What is the present value of the total expected future cash outflow?

Reference no: EM132996103

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