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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:What is the present value (in S) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate
(compounded annually)?
End of year
1
2
3
Your Answer:
Answer
Cash flow
$540
805
780
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- Helparrow_forward1 Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 10 3 4 7 Cash Flow, $ 19,000 38,500 22,000 28,500 Expressed As Today's Then-current Then-current Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $91451.92arrow_forwardWhat is the present value of the following cash flow stream at a rate of 6.25%? $411.57 $433.23 $456.03 $480.03 $505.30arrow_forward
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