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Question 1 (20 points): Given the cash flow below: Revenue year 1,500 1.500 1,500 1,500 Calculate the present value (P) and the future value (F)
Question 1 (20 points): Given the cash flow below: Revenue year 1,500 1.500 1,500 1,500 Calculate the present value (P) and the future value (F) for the following scenarios: a) The interest rate is 5% compounded daily b) The interest rate is 5% compounded monthly c) The interest rate is 5% compounded semi-annually d) Compare the results and explain the effect of compounding periods on the present and future values
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