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Use the Present Value of S1 table to determine the present value of S1 received one year from now. Assume a 10% interest rate. a.
Use the Present Value of S1 table to determine the present value of S1 received one year from now. Assume a 10% interest rate. a. What is the tated present value of the cash flows received over the five-year period? Use the same table to find the present value of $1 reccived two years from now. Continue this process for a total of five years b. Could you characterize this stream of cash flows as an annulty? Why or why not? _ (Click the icon to view the present value factor talble.) c. Use the Present Value of Annuity of \$1 table to determine the present value of the same stream of cash flows. (Cilick the lcon to view the present value annuity factor table.) d. Eompare your results to yo a. What is the total present value of the cash flows recelved over the five-year period? (Round all amounts to three decimal places.) Reference Reference
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