Question
In the following case, the mixed end- of- period cash flow stream has annuity embedded within it. Calculate the present value of the cash flow
In the following case, the mixed end- of- period cash flow stream has annuity embedded within it. Calculate the present value of the cash flow stream, assuming a 10% discount rate.
Year 1: Cash Flow= $4,000
Year 2: Cash Flow= $2,000
Year 3: Cash Flow= $9,000
Year 4: Cash Flow= $9,000
Year 5: Cash Flow= $9,000
Year 6: Cash Flow= $9,000
Year 7: Cash Flow= $6,000
Present Value ($)= ??
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
