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Consider two streams of cash flows, A and B . Stream A ' s first cash flow is $ 1 0 , 8 0 0
Consider two streams of cash flows, A and B Stream As first cash flow is $ and is received three years from today. Future cash flows in stream A grow by percent in perpetuity. Stream Bs first cash flow is $ is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is percent.
A What is the present value of each stream?
BSuppose that the two streams are combined into one project called C What is the IRR of project C
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