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You are thinking of buying a vacation rental home. It is expected to generate cash flows of $40,000 per year in years one through four

You are thinking of buying a vacation rental home. It is expected to generate cash flows of

$40,000

per year in years one through four and

$50,000

per year in years five through eight. If the appropriate discount rate is

10%

, what is the present value of these cash flows? Assume the cash flows occur at the end of each year.

image text in transcribed
3) You are thinking of buying a vacation rental home. It is expected to generate cash flows of $40,000 per year in years one through four and $50,000 per year in years five through eight. If the appropriate discount rate is 10%, what is the present value of these cash flows? Assume the cash flows occur at the end of each year. 3) You are thinking of buying a vacation rental home. It is expected to generate cash flows of $40,000 per year in years one through four and $50,000 per year in years five through eight. If the appropriate discount rate is 10%, what is the present value of these cash flows? Assume the cash flows occur at the end of each year

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