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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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