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2. Rank the following cash flow streams according to present value. In all cases, assume that the relevant interest rate is 5%. HINT: use TVM
2. Rank the following cash flow streams according to present value. In all cases, assume that the relevant interest rate is 5%. HINT: use TVM logic to avoid unnecessary computations, (a) $1,000 per year in perpetuity (first cash flow occurring one year from now) Trick of the Thade (b) Ten consecutive annual payments of $2.000, with the first payment received one year from now (c) Four consecutive annual payments of $5,000, with the first payment received ten years from now (d) $20,000 received ten years from now (e) $20,000 received fifteen years from now
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