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Now is t=0. The appropriate discount rate is 4%/yr and assume annual compounding. For each question, be sure to draw diagram to identify Cash flows
Now is t=0. The appropriate discount rate is 4%/yr and assume annual compounding. For each question, be sure to draw diagram to identify Cash flows (timing and amount) and the unknown.
- Calculate PV of CF(t=4) of 500
- Calculate PV of multiple cash flows of CF(t=1) of 200 and CF(t=5) of 500.
- Calculate the Future value if you deposit 100 for 20 years? (i.e, FV20)
- Calculate the IRR for the project with the investment of 100 now that gives 500 after 10 years.
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