What is the future vale of the cash flow

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Reference no: EM133392296

Question: A company wants their CEO to retire. It offers the CEO a cash payment once a year for the next five years. The first payment would be Kshs. 20,000 one year from today. The amount of payment will increase by 10% each successive year. Assuming a discount rate of 12%,

1) What is the present value of the cash flow?

2) What is the future vale of the cash flow?

Reference no: EM133392296

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