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Question 5 Consider the following annual cash flows: 0 1 2 3 4 5 -I- -I- --I-- -I 20k 20k 20k 25k 30k Using

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Question 5 Consider the following annual cash flows: 0 1 2 3 4 5 -I- -I- --I-- -I 20k 20k 20k 25k 30k Using a 8% interest rate, calculate a) Total future value. b) Total present value. (5 marks) (5 marks)

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