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(d) A financial company uses a 5% rate of return today and expects that this rate of return will increase by one percentage point in
(d) A financial company uses a 5% rate of return today and expects that this rate of return will increase by one percentage point in each of the next nine years. How much is today's sum of $100,000 worth to this company ten years from now? (e) A small geothermal power plant is expected to generate a net income of $300,000 in each of the next thirty years. What is the present value of this monetary stream if the discount rate is 6.5%
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