1.XYZ limited has project which is expected to yield the following cash flows: Years Cashflows 1-4 10,000...

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1.XYZ limited has project which is expected to yield the following cash flows:

Years Cashflows

1-4 10,000

5-11 15,000

12-17 20,000

18-Infinity 30,000

The annuity between year 5-9 is received at the beginning of each period. The cost of capital is 12%. Calculate the present value of the differential annuities using the two approaches. (15 mks)

Posted Date: May 17, 2024 11:06 AM

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1.XYZ limited has project which is expected to yield the following cash flows: Years Cashflows 1-4 10,000...

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