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4. A product manager prepared the following forecasts for a product line: 0 1 2 3 4 5 6 and later + + +

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4. A product manager prepared the following forecasts for a product line: 0 1 2 3 4 5 6 and later + + + + + $2m $2m $3m $4m $4m g=2.5% If the appropriate discount rate is 8.5%, what is the present value of these future cash flows? 5. A product manager prepared the following forecasts for a product line: 0 1 2 3 4 5 and later + + + + $60m $50m $40m $38m g=-2.0% Assume that the appropriate discount rate is 11.25%. What is the value of the product line?

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