Answer:
The Calculation of the Present Value of this cash outflow assuming trade credit terms of a.30 days b.45 days c.60 days d.90 days would be the following:
a.30 days is $74,625
b.45 days is $74,325
c.60 days is $74,100
d.90 days is $73,725
Explanation:
The Calculation of the Present Value of this cash outflow assuming trade credit terms of a.30 days b.45 days c.60 days d.90 days would be the following:
a. 30Days
Present Value =Future Value/(1+r)^n
$75,000/(1.07)^30/365
$75,000*.995
Present Value =$74,625
b. 45 Days
Present Value =Future Value/(1+r)^n
$75,000/(1.07)^45/365
75,000*.991
Present Value =$74,325
c. 60Days
Present Value =Future Value/(1+r)^n
$75,000/(1.07)^60/365
$75,000*.988
Present Value =$74,100
d.90 Days
Present Value =Future Value/(1+r)^n
$75,000/(1.07)^90/365
$75,000*.983
Present Value =$73,725
