An initial investment of $ 25000 in a business guarantees the following cash flows:Year Cash Flow3 8, 0004 10, 0006 14, 000Assume an interest rate of 5% compounded annually. Find the net present value of thecash flows.
An initial investment of $ 25000 in a business guarantees the following cash flows:Year Cash Flow3 8, 0004 10, 0006 14, 000Assume an interest rate of 5% compounded annually. Find the net present value of thecash flows.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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An initial investment of $ 25000 in a business guarantees the following cash flows:
Year Cash Flow
3 8, 000
4 10, 000
6 14, 000
Assume an interest rate of 5% compounded annually. Find the
cash flows.
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