Your consulting firm will produce cash flows of $100,000 this year, and you expect cash flow to

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Your consulting firm will produce cash flows of $100,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 8 percent, and you anticipate inflation of about 2 percent.

a. What is the present value of your firm’s cash flows for Years 1 through 5?

b. How would your answer to

c. change if you anticipated no growth in cash flow?

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Fundamentals Of Corporate Finance

ISBN: 9780072416275

3rd Edition

Authors: Richard A. Brealey

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Question Posted: Sep 19, 2024 02:24 PM

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Your consulting firm will produce cash flows of $100,000 this year, and you expect cash flow to

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Fundamentals Of Corporate Finance

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