Why should the allowance for doubtful accounts and the, Financial Management

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Why should the allowance for doubtful accounts and the

1. Havana, Inc., has identi?ed an investment project with the following cash ?ows. If the discount rate is 8 percent for the first 2 years and 4% for the years after year 2, what is the future value of these cash ?ows in Year 4? What is the future value of the cash flows in year 10? What is the present value of the cash flows?

Year Cash Flow

1 $1,075

2 $1,235

3 $1,510

4 $1,965

2. Why should the allowance for doubtful accounts and the valuation and qualifying accounts schedule be analyzed?

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