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a. What is the present value of the following set of cash flows, discounted at 10.8 % per year? a. What is the present value
a. What is the present value of the following set of cash flows, discounted at 10.8 % per year?
a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year - CF $8 $19 $19 $30 b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 $30 $ 19 9 8 c. Each set contains the same cash flows ($8, $19, $30, $41, $52), so why is the present value different? a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF 1 $8 $19 $30 The present value of the cash flow stream is $ . (Round to the nearest cent.) b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 The present value of the cash flow stream is . (Round to the nearest cent.) c. Each set contains the same cash flows ($8. $19, $30, $41, $52), so why is the present value different? (Select the best choice below.) O A. The present value in part (a) is higher because the larger cash flows occur sooner. OB. The present value in part(b) is lower because the larger cash flows occur sooner. OC. The present value in part (a) is lower because the larger cash flows occur sooner. OD. The present value in part(b) is higher because the larger cash flows occur soonerStep by Step Solution
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