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Problem 9 (10 marks) Consider the following cash flows. The annual interest rate is 2.5% 0 1 2 3 4 10,000 12,000 5,000 10,000 13,000

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Problem 9 (10 marks) Consider the following cash flows. The annual interest rate is 2.5% 0 1 2 3 4 10,000 12,000 5,000 10,000 13,000 a. Calculate the present value of these cash flows (at time 0). (5 marks) b. Calculate the future value of these cash flows (at time 4)

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