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or 2 years 4. You are given two possible investments with cash-flow streams as reported below (Interest rate is 15%). Which alternative would you choose

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or 2 years 4. You are given two possible investments with cash-flow streams as reported below (Interest rate is 15%). Which alternative would you choose to invest your money today? Show the cash flows on the timeline and use step-by-step approach to solve for the present value. Explain the basis of your decision. (40 points) Year CFO CF CF2 CF CF4 CFS Cash Stream A $8,000 $4,000 $6,000 -$12,000 $9,000 $11,000 Cash Stream B $8,000 -$9,000 $6,000 $4,000 $11,000 $6,000 Part B: Respond to the following questions. Briefly explain (30 Points in total) 1. Whatis afirm's fundamental, or intrinsic value? What might cause a firm'sintrinsic value to be different than its actual market value? (10 points) 2. What are financial intermediaries, and whateconomicfunctions do they perform? (10 points) 3. What is capital budgeting? Briefly explain. (10 points)

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