Question
Your client just purchased an investment that generates the following cash flows for the next four years. He are able to reinvest these cash flows
Your client just purchased an investment that generates the following cash flows for the next four years. He are able to reinvest these cash flows at 6.4 percent, compounded annually.
End of year
1.$2,672
2.$4,941
3.$3,930
4.$1,194
What is the present value of this investment if 6.4 percent per year is the appropriate after-tax rate of return?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
