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You wish to determine the equivalent value of a payment or stream of payments at a chosen point of reference. To help your calculation,
You wish to determine the equivalent value of a payment or stream of payments at a chosen point of reference. To help your calculation, you visually represent the situation by using the following timeline. |---------|----------|----------|----------|-------|-------| Yro Yr1 Yr2 Timeline Focal Date O a. future value of a lump sum Yr3 Yr4 Yr5 Yr6 O b. future value of an ordinary annuity O c. present value of a perpetuity O d. present value of an ordinary annuity O e. present value of a lump sum $5000
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