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You want to value the following set of cash flows: $300,000 is to be received 1 year from now. $35,000 is to be received 18
You want to value the following set of cash flows: | |||||||||||||
$300,000 | is to be received 1 year from now. | ||||||||||||
$35,000 | is to be received | 18 | months (i.e., 1.5 years) from now. | ||||||||||
$35,080 | is to be received 19 months from now, and cash flows will continue to arrive once per month and grow at the same monthly rate forever. | ||||||||||||
5% | is the appropriate annual discount rate with monthly compounding. | ||||||||||||
What is the PV of the complete set of cash flows? |
Please solve with excel.
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