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What is the present value PV of the following streams of cash flows (CFs), if the discount rate is 7%: a. A stream of 5

What is the present value PV of the following streams of cash flows (CFs), if the discount rate is 7%:

a. A stream of 5 consecutive and equal CFs of $5,000, starting next year 


b. A stream of 5 consecutive and equal CFs of $5,000, starting tomorrow 


c. A stream of 5 consecutive CFs, starting next year. The first CF =$5,000, and the rest are 20% more than the CF of the prior year. 


d. A stream of infinite and equal CFs of $2,000, starting next year 


e. A stream of infinite number of CFs. The first CF starts next year and is equal to $2,000. The rest of the CFs grow at 5% (over the prior year). 


f. A stream of 10 CFs. The first CF starts next year and is equal to $2,000. Then the next 5 CFs grow at 20% (over the prior year). The next 2 CFs are $0; the last 2 CFs are equal to $27,000. 


g. The PV of a stream of 10 CFs is -$25,000. You can think about this as paying 25,000 to receive a stream of 10 CFs. The first CF starts next year and is equal to $2,000. Then the next 5 CFs grow at 20% (over the prior year). The next 2 CFs are $0; the last 2 CFs are equal to $27,000.  


What is the rate of return of this investment?

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