The present value of the following cash flow stream is $6.820 when discounted at 7 percent...

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Question

business finance

Answer 1

Answer #1

Given,

Year 1 cash flow (CF₁) = $1000

Year 2 cash flow (CF₂) = ?

Year 3 cash flow (CF₃) = $1300

Year 4 cash flow (CF₄) = $1900

Discount rate (r) = 7% or 0.07

Present value of cash flows = $6820

Solution :-

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Answer 2

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