Cash Flows – Willing to Pay Now to Receive in Future
1. Find PV at year before payment begins (Year 39 if payments begin in Year 40) PV= PMT/I2. Solve for PV FV = Previous solved for PV PMT = 0 N = Given year MINUS 1 I = Interest Rate
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Cash Flows – Willing to Pay Now to Receive in Future
1. Find PV at year before payment begins (Year 39 if payments begin in Year 40) PV= PMT/I2. Solve for PV FV = Previous solved for PV PMT = 0 N = Given year MINUS 1 I = Interest Rate