Question: Problem One: Prats Engineering expects to receive $125,000 at the end of each year, for the next 10 years. The nominal interest rate is 2.55%.

Problem One: Prats Engineering expects to receive $125,000 at the end of each year, for the next 10 years. The nominal interest rate is 2.55%. As shown in class, (a) use a Discounted Cash Flow (DCF) model interest rate changes to 4.25%, how does that affect your present value (all other parameters being the same as in part (a) . to compute the present value of these future cash flows, (b) if the

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