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Unformatted text preview: -this method is used when periodic cash flows are not the same each period-when future receipts are the same in each period, annuity table can be used. -When semiannual, you double periods and halve the discount rate. Computing present value of a long term note or bond-this is a function of payment amounts, length of time until payments are made, and the discount bond-ex: issue a 5 year bond-to find out the amount fo be paid, you must figure out series of interest payments (an annuty) and a single sum or the principal amount. -...
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This note was uploaded on 12/14/2011 for the course ACCOUNTING 100 taught by Professor 1 during the Fall '11 term at Wisconsin.
- Fall '11