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Year 1 $250,000 Year 2 $20,000 Annual Cash Flows Year 3 Year 4 $330,000 $300,000 Year 5 $550,000 Year 6 $550,000 The CFO of the

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Year 1 $250,000 Year 2 $20,000 Annual Cash Flows Year 3 Year 4 $330,000 $300,000 Year 5 $550,000 Year 6 $550,000 The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? O $1,537,130 $1,650,000 O $2,000,000 O $600,000 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Uneven Cash Flows Annuity Payments O Description Debbie has been donating 10% of her salary at the end of every year to charity for the last three years. Her salary increased by 15% every year in the last three years. You deposit a certain equal amount of money every year into your pension fund. Amit receives quarterly dividends from his investment a high-dividend yield, index exchange-traded fund. Aakash borrowed some money from his friend to start a new business. He promises to pay his friend $2,650 every year for the next five years to pay off his loan along with interest. O o

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