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Long-Term Cash FlowS VI UNG SHARAN ascoume I HICH UNG BROTOCOLO for coutur cuphary quan 70. THE SECURa quasio in Cach Sot of an the

Long-Term Cash FlowS VI UNG SHARAN ascoume I HICH UNG BROTOCOLO for coutur cuphary quan 70. THE SECURa quasio in Cach Sot of an the discounted value for an interest rate that is controlled by the slider. The third equation compares the two discounted values. Change the slider and observe whether the discounted value of the one-year cash flow changes more or less quickly than the discounted value of the twenty-year cash flow. Year 1 Cash Flow PV of $100 due in 1 year @r = 5.0% : PV of $100 due in 1 year @ r = 5.0% : Year 20 Cash Flow PV of $100 due in 20 years @r= Percentage change due to different r $95.24-$95.24__ r = $95.24 = 5.0% : $100 1.051 $95.24 PV of $100 due in 20 years @r=5.0%: $100 1.050 $95.24 $100 1.0520 $37.69 = 0.0% $100 1.05020 $37.69 = Percentage change due to different r $37.69-$37.69 $37.69 0.0% K

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