Using an interest rate of5%per year, for the first two years and10%per year afterwards, what is the
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Question:
Using an interest rate of 5% per year, for the first two years and 10% per year afterwards, what is the value today of the following cash flows:
Time Cash Flow
1 50
2 100
3 100
4-10 200 (7 cash flows - years 4,5,6,7,8,9 and 10)
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