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Shrell Industries, a cabinet manufacturer, expects to receive the following mixed stream of cash flows over the next 5 years from one of its small
Shrell Industries, a cabinet manufacturer, expects to receive the following mixed stream of cash flows over the next 5 years from one of its small customers. If the firm expects to earn at least 8% on its investments, how much will it accumulate by the end of year 5 if it immediately invests these cash flows when they are received?
End of year Cash flow ($) 1 11,000 2 12,500 3 16,000 4 12,900 5 10,000
$62,400 | ||
$73,306 | ||
$79,171 | ||
$49,891 |
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