Time value of money

Use pv formula

THARUN KUMAR EKAMBARAM

CA Foundation

★ 18K+

22-Jun-21 22:51

Do and put the solution ?

Thread Starter

Aakash Raavi

CMA Inter

★ 320

22-Jun-21 22:52

Yes

Krina chauhan

CA Foundation

★ 5

22-Jun-21 22:52

First try it bro

THARUN KUMAR EKAMBARAM

CA Foundation

★ 18K+

23-Jun-21 01:02

From which book it is

THARUN KUMAR EKAMBARAM

CA Foundation

★ 18K+

23-Jun-21 01:02

I got the answer as 33.5

THARUN KUMAR EKAMBARAM

CA Foundation

★ 18K+

23-Jun-21 01:08

a. 20.10 cash flows are 0,0,0,0,0,10,10,10.... till infinity sum of PV of CF from year 6 are 10, 10/(1+20%) + 10/((1+20%) power 2)..... so on Sum of geometric progression value till infinity from year 6 for a = 10, r = 1/1.2 i.e 0.833 Sum of GP till infinity = a/(1-r) = 10/(1-0.833) = 60 PV of 60 after 6 years @20% = 60 /(1.2 power 6) = 60 /2.985 =20.09 or 20.10

Sriram Somayajula

Admin

23-Jun-21 09:08