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Question 5 Assume, you will receive annual rent payments of $20 over a time period of 100 years. Your discount rate equals 5%. There are

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Question 5 Assume, you will receive annual rent payments of $20 over a time period of 100 years. Your discount rate equals 5%. There are two possible payment schemes, all payments the beginning of each year or all at the end of each year. a) Calculate the NPV for each scheme. b) Now assume that your discount rate equals i=0. Again, calculate the NPV for both schemes (payments at the beginning and payments at the end of each year, resp). Fill your results with two decimals) for (a) and (b) into the Table below --- and also show your work! i-0% i-5% Payments at the beginning of each period Payments at the end of each period

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