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borrow . 7. Suppose you h ow 0.000 each of the next years. How much will yo 8. You sold a car and accepted the

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borrow . 7. Suppose you h ow 0.000 each of the next years. How much will yo 8. You sold a car and accepted the following cash flow stream as payment: $1.000 at the end of year one and $2,000 at the end of years two, three and four. What is the present value of these cash flows (i.e., what is the effective price you received for the car assuming an interest rate of 667 9. Suppose that there is a perpetuity that pays $500 per year and that the appropriate discount rate is 10%. What is the present value of the perpetuity if the first payment occurs one year from today? 10. Suppose that there is a perpetuity that pays $500 per year and that the appropriate discount rate is 10%. What is the present value of the perpetuity if the first payment occurs today? borrow . 7. Suppose you h ow 0.000 each of the next years. How much will yo 8. You sold a car and accepted the following cash flow stream as payment: $1.000 at the end of year one and $2,000 at the end of years two, three and four. What is the present value of these cash flows (i.e., what is the effective price you received for the car assuming an interest rate of 667 9. Suppose that there is a perpetuity that pays $500 per year and that the appropriate discount rate is 10%. What is the present value of the perpetuity if the first payment occurs one year from today? 10. Suppose that there is a perpetuity that pays $500 per year and that the appropriate discount rate is 10%. What is the present value of the perpetuity if the first payment occurs today

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