Continuous cash flows

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Petro CChem spends $120M per year on crude oil. What is the present worth of 1 year's purchases assuming (1) end-of-year cash flows, (2) continuous cash flows, (3) end-of-month cash flows, and (4) end of-week cash flows?

(a) The interest rate is 10%.

(b) The interest rate is 25%.

Reference no: EM131808878

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