What is the present value of the following cash flow stream at a rate of 8%? Year 0-$750 Year 1-$2,450 Year 2-$3,175 Year 5-$4,400 a. $7,917 b. $8,333 c. $8,772 d. $9,233 e. $9,695
Added by Brian H.
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Using the formula for present value, PV = CF / (1 + r)^n, where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods. For Year 0, the cash flow is $750, so the present value is $750 / (1 + 0.08)^0 = $750. For Year Show more…
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