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Which of the following two streams of cash flows produces a higher Present Value? Assume a discount rate of 8.60%. values are in mios Year
Which of the following two streams of cash flows produces a higher Present Value? Assume a discount rate of 8.60%. values are in mios
| Year | Cash Flow A | Cash Flow B |
| 0 | ($100) | ($73.50) |
| 1 | 22 | 11 |
| 2 | 21 | 15 |
| 3 | 24 | 6 |
| 4 | 26 | 19 |
| 5 | 29 | 22 |
| 6 | 115 | 22 |
| 7 | 0 | 22 |
| 8 | 0 | 22 |
| 9 | 0 | 22 |
| 10 | 0 | 90 |
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Get Rich With Dividends
Authors: Marc Lichtenfeld
3rd Edition
1119985552, 978-1119985556
