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Based on the projected year-end annual cash flows shown below, calculate the net present value (NPV) if the investor requires a yield of j1 =
Based on the projected year-end annual cash flows shown below, calculate the net present
value (NPV) if the investor requires a yield of j1 = 10%.
| Year | End of Year Cash Flow |
| 1 | 1,080,000 |
| 2 | 1,080,000 |
| 3 | 1,227,000 |
| 4 | 1,435,000 |
| 5 | 1,080,000 |
| 6 | 975,000 |
| 7 | 1,354,000 |
| Cost | 4,750,000 |
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
