Calculate and rank the economic values of the following cash flow streams: (i) A single payment of
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(i) A single payment of $10,000 eight years from now. (ii) An annuity due starting today with eight annual payments of $850.
(iii) An annuity due starting in eight years with eight annual payments of $1700. Do the calculations and ranking for each of two cases:
a. Money can earn 8% compounded annually for the next 16 years.
b. Moneycanearn10%compoundedannuallyforthenext16years.
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