An investment will provide annual cash flows of $20,000 for 7 years and then be worthless....
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An investment will provide annual cash flows of $20,000 for 7 years and then be worthless. If you require a 9% rate of return, how much should you pay for these cash flows? (First cash flow is received 1 year from today.) Amount to pay Formula An investment will provide annual cash flows of $20,000 for 7 years and then be worthless. If you require a 9% rate of return, how much should you pay for these cash flows? (First cash flow is received 1 year from today.) Amount to pay Formula
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To calculate the present value of the cash flows you can use the formula for ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
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