Question: A contract will produce cash flows on 4 different dates. The cash inflows are: $1000 after 1 year, $8000 after 3 years, $12000 after

A contract will produce cash flows on 4 different dates. The cash

A contract will produce cash flows on 4 different dates. The cash inflows are: $1000 after 1 year, $8000 after 3 years, $12000 after 7 years, and 10000 after 10 years. The required rate of return is 8.5% pa. a. Calculate the present value b. Calculate the terminal value

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