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(Proscrt value of complex cash flows) You have an opportunity to make an investment that will pay $400 at the end of the first yoar,

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(Proscrt value of complex cash flows) You have an opportunity to make an investment that will pay $400 at the end of the first yoar, $200 at the end of the second year, $200 at the and of the third year, $400 at the end of the fourth year, and $200 at the end of the fith year. a. Find the present value if the interest rate is 11 percent. (Hint: You can simply bring each cash flow back so the present and then add them up. Another way to work this problem ia to either use the = NPV function in Excel or to use your CF koy on a financial calcislator-but you'l want to check your calculator's manual before you use this key. Keep in mind that with the = NPV function in Excel, there is no initial outiay. That is, all this function does in bring all the future cash fows back to the present. Wer a financial calculator, you should keep in mind that CF0 is the initial outlay or cash flow at time 0 , and, because there is no cash flow at time 0,CF0=0.) b. What would happen to the present value of this stream of cash flows if the interost rate were zeeo percent? a. What is the present value of the investenent if the interest rate is 11 porcent? (Round to the nearest cent)

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