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At a rate of 8%, what is the present value of the following cash flow stream? $0 at Time 0; $100 at the end of
At a rate of 8%, what is the present value of the following cash flow stream? $0 at Time 0; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3; and $500 at the end of Year 4? (10p) a. $717.31 b. $625.54 c. $788.32 19) You have a chance to buy an annuity that pays $1,000 at the end of each year for 5 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity? (10p) a. $3,324.89 b. $2,591.45 c. $4,212.36
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