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PV of Multiple Cash Flows: Pam Gregg Is Expecting Cash

question 77

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PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. If she can earn 11 per cent on any investment that she makes, what is the present value of her inheritance? (Round to the nearest dollar.)

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Definitions:

Direct Method

A method of reporting cash flows from operating activities in the statement of cash flows that lists major classes of gross cash receipts and payments.

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A specialized division within a hospital where surgical procedures are carried out.

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Physical and virtual connection points used for interfacing different types of telecommunications equipment or networks.

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Individuals who work under a contract of employment, contributing labor in exchange for receiving a salary or wage.

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