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Compute what is pv today of future salary cash flow stream

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Problem 1: Your salary next year is expected to be $40,000. Assume you expect your salary to grow at a steady rate of 3% per year for another 24 years. If the appropriate cost of capital (aka discount rate) is 9.4%, what is the PV today of your future salary cash flow stream? For simplicity, assume the salary amounts are at the end of each of the next 24 years. Answer to zero (0) decimal places.

Reference no: EM132765250

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