Question
Consider two streams of cash flows, A and B. Stream As first cash flow is $8,900 and is received three years from today. Future cash
Consider two streams of cash flows, A and B. Stream As first cash flow is $8,900 and is received three years from today. Future cash flows in Stream A grow by 4 percent in perpetuity. Stream Bs first cash flow is $10,000, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 12 percent.
What is the present value of each stream?
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Computational Finance Using C And C #
Authors: George Levy DPhil University Of Oxford
1st Edition
0750669195, 978-0750669191
