Calculate the current market value of the cash flow stream

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Reference no: EM131559733

Suppose you expect to receive $35,000 in one year, $30,000 in two years and $25,000 in three years, but you must pay $40,000 in four years. The OCC for this cash flow stream is 9%.

a. Calculate the current market value of the cash flow stream.

b. Forecast the market value of this cash flow stream at year 2.

Reference no: EM131559733

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