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You are given the following cash flow information. The appropriate discount rate is 6 percent for years 1-4 and 2 percent for years 5-10. Payments
You are given the following cash flow information. The appropriate discount rate is 6 percent for years 1-4 and 2 percent for years 5-10. Payments are received at the end of the year.
Year | Amount | Interest Rate |
1-4 | $8,000 | 6% |
5-10 | $11,000 | 2% |
What should you be willing to pay right now to receive the income stream above?
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