Question
Mail order business will generate cash flows of $10,000 at the end of each of the next 3 years, $20,000 at the end of year
Mail order business will generate cash flows of $10,000 at the end of each of the next 3 years, $20,000 at the end of year 4, $30,000 at the end of year 5 and $50,000 at the end of year 6. Given that other investments of equal risk earn 6% per annum, calculate the present value and future value of this investment. (Show all calculations supporting your answers).
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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