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Intro It is the end of 2019. You (foolishly) played the lottery and won the following cash flows, to be paid at the end of

Intro

It is the end of 2019. You (foolishly) played the lottery and won the following cash flows, to be paid at the end of each year:

Year	2020	2021	2022	2023	2024
Cash flow	1,300	1,600	1,800	2,000	2,200

The appropriate interest rate is 15%.

Attempt 1/1 for 10 pts.

Part 1

What is the sum of present values?

Attempt 1/1 for 10 pts.

Part 2

Now assume that the interest rate is 13%. What is the present value of all cash flows?

Attempt 1/1 for 10 pts.

Part 3

Now assume that the interest rate is 19%. What is the present value of all cash flows?

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