You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in

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You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in two years, and pay an $800 payment in three years. If interest rates are 10 percent per year, what is the combined present value of these cash flows?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:25 AM

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You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in

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The timeline of this problem is First discount the 500 to year 0 PV 500 1 010 454545 ...View the full answer

Finance Applications and Theory

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