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The following cash flows are all end-of-period values. 200 300 300 300 400 400 400 500 . . . . . . . 500 0
The following cash flows are all end-of-period values. 200 300 300 300 400 400 400 500 . . . . . . . 500 0 1 2 3 4 5 6 7 . . . . . . . 10 Use a 20% nominal interest rate compounded annually to determine the economically equivalent present value, P, of the payments at time zero, the economically equivalent future value, F, of the payments at the end of year 10, and the equivalent annual series of end-of-period payments, A, in years 1-10. P 0 = F10 = A 1-10 =
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