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Suppose you receive $ 1 2 0 at the end of each year for the next 3 years. a . If the interest rate is
Suppose you receive $ at the end of each year for the next years.
a If the interest rate is what is the present value of these cash flows?
b What is the future value in years of the present value you computed in a
c Suppose you deposit the cash flows in a bank account that pays interest per year. What is the balance in the account at the end of each of the next yearsafter your deposit is made How does the final bank balance compare with your answer in b
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Part
a If the interest rate is what is the present value of these cash flows?
The present value of these cash flows is $
enter your response here. Round to the nearest cent.
i$ received in year
ii$ received in years
iii. $ received in years
a Rank the alternatives from most valuable to least valuable if the interest rate is per year.
b What is your ranking if the interest rate is only per year?
c What is your ranking if the interest rate is per year?
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Part
a Rank the alternatives from most valuable to least valuable if the interest rate is per year.Select the best choice below.
A
The ranking of the projects is: option igreater thanoption iiigreater thanoption ii
B
The ranking of the projects is: option iigreater thanoption igreater thanoption iii.
C
The ranking of the projects is: option iigreater thanoption iiigreater thanoption i
D
The ranking of the projects is: option iiigreater thanoption iigreater thanoption i
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