Computing the Present Value of a Single Amount Depp is reviewing an investment that will provide a payout of $108,000 in five years. If Depp considers a 5% interest rate (compounded annually) acceptable, what amount is Depp willing to pay for the investment today? Round your answer to the nearest whole number. Do not use a negative sign with your answer.

Principles of Accounting Volume 2
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ISBN:9781947172609
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Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
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Computing the Present Value of a Single Amount

Depp is reviewing an investment that will provide a payout of $108,000 in five years. If Depp considers a 5% interest rate (compounded annually) acceptable, what amount is Depp willing to pay for the investment today?

  • Round your answer to the nearest whole number.
  • Do not use a negative sign with your answer.
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