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Question 1 Marked out of 25.00 p Flag question a. A single cash flow of $1,673.48 will be received each of the next 4 periods.
Question 1 Marked out of 25.00 p Flag question a. A single cash flow of $1,673.48 will be received each of the next 4 periods. For this cash Not yet answered flow, the appropriate discount rate / period is 7.8%. Calculate the present value of this single cash flow in three equivalent ways. i. First, calculate the present value using a time line, where each column corresponds to a period of calendar time. (5 marks) ii. Second, use a formula for the present value. (4 marks) iii. Third, use Excel's PV function for the present value. (4 marks) b. A single cash flow of $932.47 is available now (in period 0). For this cash flow, the appropriate discount rate / period is 3.9%. What is the period 4 future value of this single 1.5.10
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