Question
Four years from now you will receive the first of seven annual $10,000 payments. The current interest rate is 6%, but by the beginning of
Four years from now you will receive the first of seven annual $10,000 payments. The current interest rate is 6%, but by the beginning of year 4, the rate will rise to 8%. What is the present value of this cash flow stream?
Explain with details please.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
