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Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as
Present value of annuities and complex cash flows)
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
Assuming an annual discount rate of 20 % find the present value of each investment.
Investment Alternatives | ||||||
End of Year | A | B | C | |||
---|---|---|---|---|---|---|
1 | $ | 10,000 | $ | 10,000 | ||
2 | 10,000 | |||||
3 | 10,000 | |||||
4 | 10,000 | |||||
5 | 10,000 | $ | 10,000 | |||
6 | 10,000 | 50,000 | ||||
7 | 10,000 | |||||
8 | 10,000 | |||||
9 | 10,000 | |||||
10 | 10,000 | 10,000 |
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