Question
In the following case, the mixed end-of-period cash flow stream has an annuity embedded within it. Calculate the present value of the cash flow stream,
In the following case, the mixed end-of-period cash flow stream has an annuity embedded within it. Calculate the present value of the cash flow stream, assuming a 9% discount rate.
| Year | Cash Flow |
|
| 1 | $2,000 | |
| 2 | $8,000 | |
| 3 | $4,000 | |
| 4 | $4,000 | |
| 5 | $4,000 | |
| 6 | $4,000 | |
| 7 | $7,000 | |
| Present Value ($)equals= |
What is the present value of this stream of cash flows?
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Finance And Occupational Pensions
Authors: Charles Sutcliffe
1st Edition
1349948624, 978-1349948628
