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What is the present value of the following cash flow stream at a rate of 6.25%? Years 1 2 3 4 Cash flows $o $75 $225 $0 $267.8 O $411.57 $433.23 O $456.03 O $480.03 O $505.30

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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What is the present value of the following cash flow stream at a rate of 6.25%?
Years
1
2
3
4
Cash flows $0
$75
$225
$0
$267.8
O $411.57
O $433.23
O $456.03
O $480.03
O $505.30

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