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3. (a) Consider the cash flows of the following project. Find the duration of the project. (15) Annual Cash flow $2,000 -$1,000 -$859 $267 $340

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3. (a) Consider the cash flows of the following project. Find the duration of the project. (15) Annual Cash flow $2,000 -$1,000 -$859 $267 $340 $466 Present Value @8.46% Year 0 Terminal Value Present value *t 2 4 $9910 SUM DURATION 5 (b) What should be the duration of the perfect debt for this project

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