Compute the present discounted value of the following income streams. Assume the interest rate is 3%. (a)
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Compute the present discounted value of the following income streams. Assume the interest rate is 3%.
(a) $50,000, received 1 year from now.
(b) $50,000, received 10 years from now.
(c) $100 every year, forever, starting immediately.
(d) $100 every year, forever, starting 1 year from now.
(e) $100 every year for the next 50 years, starting immediately.
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a PV A 1 r n 50000 103 4854368 b PV 50000 103 10 3720469 c PV A ...View the full answer
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