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Please use formulas, not excel 5-36 Relationship between future value and present value: Mixed stream Using the information in the accompanying table, answer the questions
Please use formulas, not excel
5-36 Relationship between future value and present value: Mixed stream Using the information in the accompanying table, answer the questions that follow. Assume all transactions take place at the end of the year. a. Using a discount rate of 7%, determine the present value of the cash flows. b. Suppose you had a lump sum equal to your answer in part a. You invested this sum in an account earning a 7% return each year. How much would you have after 6 years? c. Calculate the future value of cash flows 6 years from now and compare it to your answer in part b. d. How much would you be willing to pay for this, assuming that you can earn 7% on vour investmentsStep by Step Solution
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