Consider the following cash flow streams, where each cash flow is coming in or going out at
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Question:
Consider the following cash flow streams, where each cash flow is coming in or going out at the end of each annual period:
REQUIRED:
A. Find the present value of the cash flows in stream A at an interest rate of 6%.
B. Find the present value of the cash flows in stream B at an interest rate of 6%.
C. Find the present value of the cash flows in stream C at an interest rate of 6%.
D. If you, as a profit maximizer, are on the receiving side of these cash flows, Which stream of cash flows would be the best for you?
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