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Income ApproachHARD8.2% of exam

A single $100,000 payment is received at the end of year 5. Using annual compounding at a 7.000000000000001% discount rate, what is its present value, rounded to the nearest dollar?

Correct Answer

B) $71,299

100000÷(1+0.07)^5 = 71298.61794836682. Use the specified inputs and convention only; this numerical result does not independently establish the market support for the assumptions.

Answer Options
A
$64,169
B
$71,299
C
$78,428
D
$85,558

Why This Is the Correct Answer

100000÷(1+0.07)^5 = 71298.61794836682. Use the specified inputs and convention only; this numerical result does not independently establish the market support for the assumptions.

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