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Find the present vale of the following stream of cash flows assuming that the firm’s cost...

Find the present vale of the following stream of cash flows assuming that the firm’s cost is 14% and that these amounts are received at the end of each year.

Year                            Amount

1 – 5                            $20,000/yr

6 – 10                          $35,000/yr

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Answer #1

Discout ate= 141 NPY 20000 20000十 2000 0 2 0000 2000 O 小144 j小192 35 000 35 000 35 000 + 35000 + 3500o + 1-I48 j-149 小146 103 h

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