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Question 1: An annuity pays $100 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet as follows:
Question 1: An annuity pays $100 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet as follows: 0 1 100 2 100 3 100 4. 100 5 100 6 100 7 100 8 100 9 100 10 100 For these cash flows the appropriate discount rate is 6%. What is the PV of this series of cash ws? Solve the problem using the following approaches: a. Estimate the PV as the sum of the PVs of each of the CFs. b. Use the annuity formula. c. Use the excel built-in function PV
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