meet_ex4


Exhibit 4: Present Value Adjusted for Uncertainty for Asset F
  Cash flow Probability Probability-
adjusted
cash flow
Discount factor 6% Present value
Year 1

Adjustment to reflect risk premium.

$8,000
$10,000
0.10
0.90
$ 800
9,000
$9,800
(1,400)
$8,400
0.943 $7,921
Year 2 $7,000
$10,000
0.15
0.85
$1,050
8,500
$9,550
0.890 $8,500
Year 3 $7,000
$10,000
0.20
0.80
$1,400
8,000
$9,400
0.840 $7,896
Year 4 $6,500
$10,000
0.23
0.77
$1,495
7,700
$9,195
0.792 $7,282
Year 5 $6,000
$10,000
0.25
0.75
$1,500
7,500
$9,000
0.747 $6,723
Year 6 $ 5,000

$10,000
0.30
0.70
$ 1,500
7,000
$ 8,500
0.705 $ 5,992
Total     $54,045   $44,314
 

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.