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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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