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    What is the current value of the expected cash flow stream?

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    You intend to set up a mail order gift basket business in your home while you attend college. You expect the following cash flows:

    Year Cash Flow

    1 $5,000.00
    2 $8,000.00
    3 $1,200.00
    4 $1,400.00

    You can borrow at 11% to start this business. What is the current value of the expected cash flow stream?
    Will it return a higher rate (IRR) than your borrowing costs if you must invest $10,000 today to begin the business?

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    https://brainmass.com/business/internal-rate-of-return/current-value-expected-cash-flow-stream-123459

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    The solution calculates the expected cash flow and internal rate of returns.

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