Quantitative Problem: You own a security with the cash flows shown below. 0 $ 1 2 3 4 0 640 375 250 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent. 310

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
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Quantitative Problem: You own a security with the cash flows shown below.
0
$
0
1
2
3
640
375
250
310
If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest
cent.
Transcribed Image Text:Quantitative Problem: You own a security with the cash flows shown below. 0 $ 0 1 2 3 640 375 250 310 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent.
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