. The firm is facing a lot of downtime issues with the current cloud computing provider. The firm has won a lawsuit against the cloud computing provider for not meeting the uptime Service Level Agreement (SLA). The firm is expecting a payment of  $100,000 to be paid two years from now.  The required rate of return (or discount) rate for the firm is 10%.  (i) Enter values of required rate (or discount Rate), number of periods and FV in cells C12, C13 and C15 respectively.  (ii) Write formula in cell F13 to compute the present value of the payment.

Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter8: Subprime Lending Fiasco-ethics Issues
Section: Chapter Questions
Problem 3.7EC
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2. The firm is facing a lot of downtime issues with the current cloud computing provider. The firm has won a lawsuit against the cloud computing provider for not meeting the uptime Service Level Agreement (SLA). The firm is expecting a payment of  $100,000 to be paid two years from now. 
The required rate of return (or discount) rate for the firm is 10%. 
(i) Enter values of required rate (or discount Rate), number of periods and FV in cells C12, C13 and C15 respectively. 
(ii) Write formula in cell F13 to compute the present value of the payment.  

7
8
9
10
11
12
13
14
15
16
A
B
Present Value (PV)
D
Table P1.2
Required rate (or discount Rate)
Number of Periods (Nper)
Periodic Payment (PMT)
Future Value (FV)
F
2. The firm is facing a lot of downtime issues with the current cloud computing provider. The firm has won a lawsuit against the cloud computing provider for not
meeting the uptime Service Level Agreement (SLA). The firm is expecting a payment of $100,000 to be paid two years from now.
The required rate of return (or discount) rate for the firm is 10%.
(i) Enter values of required rate (or discount Rate), number of periods and FV in cells C12, C13 and C15 respectively.
(ii) Write formula in cell F13 to compute the present value of the payment.
Present Value (PV)
H
Correct Answer
Present Value (PV)
OR
Present Value (PV)
($82,644.63)
$82,644.63
Transcribed Image Text:7 8 9 10 11 12 13 14 15 16 A B Present Value (PV) D Table P1.2 Required rate (or discount Rate) Number of Periods (Nper) Periodic Payment (PMT) Future Value (FV) F 2. The firm is facing a lot of downtime issues with the current cloud computing provider. The firm has won a lawsuit against the cloud computing provider for not meeting the uptime Service Level Agreement (SLA). The firm is expecting a payment of $100,000 to be paid two years from now. The required rate of return (or discount) rate for the firm is 10%. (i) Enter values of required rate (or discount Rate), number of periods and FV in cells C12, C13 and C15 respectively. (ii) Write formula in cell F13 to compute the present value of the payment. Present Value (PV) H Correct Answer Present Value (PV) OR Present Value (PV) ($82,644.63) $82,644.63
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