Assume r=0.1. What is the present value of the following stream of cash flow?Year 0Year 1Year 2YearYear 4Year ...100010001000100010001000110001000001200010000

Cash Flow = 1000 r = 0.1 n = infinity

Answered: Assume r=0.1. What is the present value…

Assume r=0.1. What is the present value of the following stream of cash flow? Year 1 1000 Year 2 1000 Year 0 Year 3 Year 4 Year ... 1000 1000 1000 1000 ....... 11000 100000 12000 10000

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

Assume r=0.1. What is the present value of the following stream of cash flow?
Year 0
Year 1
Year 2
Year
Year 4
Year ...
1000
1000
1000
1000
1000
1000
11000
100000
12000
10000

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