Prediction Error Refer to Problem 12-12. Suppose the annual cash flow were $3,200 instead of $2,800. All

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Prediction Error Refer to Problem 12-12. Suppose the annual cash flow were

$3,200 instead of $2,800. All other parameter predictions are correct. What is the cost of prediction error measured in terms of net present value? What is the cost of prediction error if the annual cash flow of $2,800 were to last only five years instead of ten, assuming all other parameter predictions are correct?  L01

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