Consider the mixed streams of cash flows shown in the following table. a. Find the present value

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Consider the mixed streams of cash flows shown in the following table.

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a. Find the present value of each stream using a 5% discount rate.

b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $50,000 in each case. Is there some discount rate at which the present values of the two streams would be equal?

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Principles Of Managerial Finance Brief

ISBN: 9781292267142

8th Global Edition

Authors: Chad J. Zutter, Scott B. Smart

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