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Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.) Year Cash Flow Year 0 (Today) $2,000 Year 1 2,000 Year 2
Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.)
Year Cash Flow
Year 0 (Today) $2,000
Year 1 2,000
Year 2 0
Year 3 1,500
Year 4 2,500
Year 5 4,000
Consider the following uneven cash flow stream. What cash flow Today (Year 0), instead of the current $2,000, would be needed to accumulate $20,000 at the end of Year 5? (Assume that the interest rate remains 10% and the cash flows for Years 1 through 5 remain unchanged.)
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