Question
An investment is expected to generate cash flows of $15,000 next year (at time t=1), and $10,000 in two years at time t=2. After that,
An investment is expected to generate cash flows of $15,000 next year (at time t=1), and $10,000 in two years at time t=2. After that, the annual cash flows generated by the cash flows will decrease forever at growth rate of -8% APR compounded annually. What is the present value of this stream of cash flows if r = 10% APR compounded annually?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
14th Edition
1264101597, 9781264101597
