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4(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as
4(Present value of an uneven stream of payments)
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
A B C
1000 3000 6000
2000 3000 6000
3000 3000 (6000)
(4000) 3000 (6000)
4000 5000 16000
1. What is present value of investment A at annual discount of 15%?
2. What is present value of investment B at discount rate of 15%?
3. What is present value of investment C at discount rate of 15 %?
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