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1. If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)

2. True or False: If a firm’s CFFA or “free cash flow” is negative, this means that the firm will be unable to pay any cash dividends.

3. What's the present value, when interest rates are 7.5 percent, of a $155 payment made every year forever? (Round your answer to 2 decimal places.)

 

Financial Management, Finance

  • Category:- Financial Management
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