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Q2. Relationship between future value and present value mixed stream. Using the information in the accompanying table, answer the questions that follow Year CF $700
Q2. Relationship between future value and present value mixed stream. Using the information in the accompanying table, answer the questions that follow Year CF $700 1 600 2 3 2,000 4 3,500 5 1,400 6 1,200 Determine the present value of the mixed stream of cash flows using a 7% discount rate . b How much would you be willing to pay today for an assuming that you can at best earn 7% on your investment? opportunity to buy this stream, What effect, if any, would a 1) 9% and 2) 5% rather than a 7% opportunity costs have on . your analysis. Explain
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