a. Find the present values of the following cash flow streams. The appropriate interest rate is 8%.

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b. What is the value of each cash flow stream at a 0% interestrate?

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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Question Posted: Sep 22, 2011 05:16 PM

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a. Find the present values of the following cash flow streams. The appropriate interest rate is 8%.

Question:

Cash Stream A Cash Stream B Year $100 400 400 400 $300 400 400 400 400 300 100

Step by Step Answer:

a With a financial calculator simply enter the cash flows be sure to enter CF0 0 enter IYR ...View the full answer

Corporate Finance A Focused Approach

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