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A wealthy relative has offered to finance their neice's veterinary education and practice set up through 19 end-of-year payments starting one year from now. The
A wealthy relative has offered to finance their neice's veterinary education and practice set up through
19
end-of-year payments starting one year from now. The first two payments would be
$25,000
and
$22,000
in one and two years respectively, and then
$16,000
per year after that for
17
years. If the investment requires a return of
10.8%,
what is the present value of this stream of cash flows?
What is the present value of this stream of cash flows?
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