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Compute the Present Value of the following cash flows. Time 0 is today. Time 1 is one year from today, etc. TIME CASH FLOWS --------------------------------------------------------------
Compute the Present Value of the following cash flows. Time 0 is today. Time 1 is one year from today, etc.
TIME CASH FLOWS
--------------------------------------------------------------
0
1 +$6500
2 +$6500
3 +$6500
4 +$6500
5 +$6500
6 +$6500
7 +$6500
8 +$6500
9 +$6500
10 +$6500
Assume an interest rate of 5%.
a. $65,000
b. $50,191
c. $64,641.50
d. $90,193
e. $93,989
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