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You have a choice of accepting either of two 5-year cash flow streams or single amounts. One cash flow stream is an ordinary annuity, and
You have a choice of accepting either of two 5-year cash flow streams or single amounts. One cash flow stream is an ordinary annuity, and the other is a mixed stream. YOu may accept stream and single amounts associated with each (see the following table), and asuming a 9% opportunity cost, which alternative (A or B) and in which form (cash flow steam or single amount) would you prefer? In other words, whcih of the4 cash flows would you most prefer? Calcuate the present value of each. End of Year
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