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

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

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