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What is the present value of the following cash flow stream at a rate of 10.0%? Years: 0 1 2 3 CFs: $750 $2,450 $3,175 $4,400 a. $10,755.00 b. $13,143.15 c. $11,855.25 d. $9,722.73 e. $8,907.02

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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Question

What is the present value of the following cash flow stream at a rate of 10.0%?

Years:	0	1	2	3
CFs:	$750	$2,450	$3,175	$4,400

a. $10,755.00

b. $13,143.15

c. $11,855.25

d. $9,722.73

e. $8,907.02

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