The value of an investment comes from its cash flows. Lets say you are intent on receiving
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The value of an investment comes from its cash flows. Let’s say you are intent on receiving $45,000 per year, starting at the end of year one and continuing over 10 years. A lump-sum of $380,000 invested now (year 0) will allow you to receive your desired annual amount. What interest rate is required to make this happen?
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At time zero an amount of 380000 is equivalent to 45000 received at the end of years ...View the full answer
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Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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