Question: Q2. Relationship between future value and present value mixed stream. Using the information in the accompanying table, answer the questions that follow Year CF $700

 Q2. Relationship between future value and present value mixed stream. Using

Q2. Relationship between future value and present value mixed stream. Using the information in the accompanying table, answer the questions that follow Year CF $700 1 600 2 3 2,000 4 3,500 5 1,400 6 1,200 Determine the present value of the mixed stream of cash flows using a 7% discount rate . b How much would you be willing to pay today for an assuming that you can at best earn 7% on your investment? opportunity to buy this stream, What effect, if any, would a 1) 9% and 2) 5% rather than a 7% opportunity costs have on . your analysis. Explain

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