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a. Determine the present value of the mixed stream of cash flows using a 5% discount rate. b. Suppose you had a lump sum equal
a. Determine the present value of the mixed stream of cash flows using a 5% discount rate. b. Suppose you had a lump sum equal to your answer in part a on hand today. If you invested this sum for 5 years and earned a 5% return each year, how much would you have after 5 years? C. Determine the future value 5 years from now of the mixed stream, using a 5% interest rate Compare your answer here to your answer in part b d How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your nvestment
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