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Time Value Problems For problems 1 5, use a discount rate of 10%. Problem 6 do not. 1) What would be the value of an
Time Value Problems
For problems 1 5, use a discount rate of 10%. Problem 6 do not.
1) What would be the value of an asset that returns a cash flow of $1000 one year from now?
2) What would be the value of an asset that returns a cash flow of $1000 in each of the next five years starting one year from now?
5) What would be the value of an asset that returns a cash flow of $100 each year forever starting one year from now?
6) If the current value of $1000 received five years from now is $680.50, what is the assumed annual interest rate?
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