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which step is involved in computing the present value of cash flows? 1. calculate the present value of the smallest individual cash flow using an

which step is involved in computing the present value of cash flows?

1. calculate the present value of the smallest individual cash flow using an appropriate discount rate?

2. Sup up the cash flow amounts and divide by the number of cash flows

3. Sum up the present values of each individual cash flow using an appropriate discount rate

4. calculate the present value of the largest individual cash flow using an appropriate discount rate

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