Present Value of Many Cash Flows
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I will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year. If I require a 14 percent rate of return, what is the present value of these cash flows?
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Solution Summary
The solution explains how to apply to relevant formula and then does so in an excel spreadsheet attached where one can highlight the cell to see how each number was obtained.
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In order to calculate the present value of the cash flows we need to ...
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