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Problem:

Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year.

Required:

Question: If you require a 14 percent rate of return, what is the present value of these cash flows?

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162057

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