A mail order business will generate cash flows of $9,000 at the end of each of the next 3 years, $19,000 at the end of year 4, $25,000 at the end of year 5 and $45,000 at the end of year 6. Given that other investments of equal risk earn 8% per annum, calculate the present value and future value of this investment

A mail order business will generate cash flows of $9,000 at the end of each of the next 3 years, $19,000 at the end of year 4, $25,000 at the end of year 5 and $45,000 at the end of year 6. Given that other investments of equal risk earn 8% per annum, calculate the present value and future value of this investment

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 28P

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