Question
Answer all questions as true or false. 1. Calculate the present value of the given stream of cash flows using the given discount rate. The
Answer all questions as true or false.
1. Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is between $24,000 and $24,100.
time | cash flows | discount rate |
0 | 5% | |
1 | $1,000 | |
2 | $1,500 | |
3 | $2,000 | |
4 | $2,500 | |
5 | $3,000 | |
6 | $3,500 | |
7 | $4,000 | |
8 | $4,500 | |
9 | $5,000 | |
10 | $5,500 |
2. Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is between $17,550 and $17,600.
time | cash flows | discount rate |
0 | 10% | |
1 | $1,000 | |
2 | $1,500 | |
3 | $2,000 | |
4 | $2,500 | |
5 | $3,000 | |
6 | $3,500 | |
7 | $4,000 | |
8 | $4,500 | |
9 | $5,000 | |
10 | $5,500 |
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