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Shown below are two mixed streams of cash flows. Calculate the present value (PV) of each mixed stream. Mixed stream #1: Let the required return
Shown below are two mixed streams of cash flows. Calculate the present value (PV) of each mixed stream. Mixed stream \#1: Let the required return (discount rate) be 5% per year, compounded annually. NOTE that these cash flows are ANNUAL. year1=$500year2=$200year3=$300year4=$0year5=$500year6=$500 Mixed stream \#2: Let the required return (discount rate) be 3.8% per year, compounded semiannually. NOTE that these case flows are SEMIANNUAL. period 1=$0 period 2=$200 period 3=$200 period 4=$0 period 5=$200 period 6=$500
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