Question
A. If you thought the appropriate discount rate was 5%, what would be the present value of this cash flow stream today at t=0?
A. If you thought the appropriate discount rate was 5%, what would be the present value of this cash flow stream today at t=0? B. If you thought the appropriate interest/discount rate was 5%, what would be the future value of this cash flow stream in five years (at t=5 years)? Year 1 Year 2 $60,000 $70,000 Year 3 $80,000 Year 4 $90,000 Year 5 $100,000
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
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