Question: The scheduled payment stream consists of $ 5000 due today and $ 10,000 due in five years . It is proposed to replace this stream

The scheduled payment stream consists of $ 5000 due today and $ 10,000 due in five years . It is proposed to replace this stream by an economically equivalent stream comprised of three equal payments due one three , and five years from now . Determine the size of each payment if money is worth 5 % compounded annually .

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