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Investing is a risky business, so investors must be ready to accept that future investment cash flows may be uncertain and unpredictable. This being case,
Investing is a risky business, so investors must be ready to accept that future investment cash flows may be uncertain and unpredictable. This being case, what is the best way to evaluate the value of such an investment? Determine the future value of the individual anticipated cash flows at a minimum acceptable rate of return Convert the individual future cash flows in a perpetuity and determine the present value of the perpetuity Determine the present value of the individual anticipated cash flows at a minimum acceptable rate of return Convert the individual future cash flows into an annuity and determine the present value of the annuity
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