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Present and future values of a cash flow stream

An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6.

a. If other investments of equal risk earn 11% annually, what is its present value?

b. If other investments of equal risk earn 11% annually, what is its future value?

Explain comprehensively and also show all work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147320

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