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Two series of cash flows listed below are equivalent when annual interest is 1 0 % compounded annually. CF 1 : $ 1 0 0
Two series of cash flows listed below are equivalent when annual interest is compounded annually.
CF: $ in year increasing by $ each year for more years.
CF: A constant cash flow of $A dollars over the same years.
A What is the present value of cash flow
B What is the value of A in the second cash flow that makes these two cash flows equivalent?
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