7. Consider a cash flow series of 40 payments. The first 20 payments are $1,000 per year and the last 20 payments are $2,000 per year. At 6% interest what is the present value of the cash flow series?

7. Consider a cash flow series of 40 payments. The first 20 payments are $1,000 per year and the last 20 payments are $2,000 per year. At 6% interest what is the present value of the cash flow series?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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Question

7. Consider a cash flow series of 40
payments. The first 20 payments are $1,000
per year and the last 20 payments are $2,000
per year. At 6% interest what is the present
value of the cash flow series?

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