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Calculate the present value of each cash flow using a discount rate of 7%. Which do you most prefer most? Show and explain all supporting calculations!

1. Receive $40 today and then receive $40 in four years.

2. Receive $4every year, forever, starting today.

3. Pay $10 every year for five years, with the first payment being next year, and then subsequently receive $3 every year for 20 years.

4. Receive $9 every other year, forever, with the first payment being next year.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92830363

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