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Determine what is present value today of future cash flows

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Problem 1: Next year you will begin receiving $161 per year in perpetuity from a family trust fund (first payment is exactly 1 year from today). You have decided to discount these cash flows at a constant interest rate of 7.4%. What is the present value today of these future cash flows? (Hint: draw a time line to illustrate exactly the cash flows for this problem.) Answer to 2 decimal places.

Reference no: EM132765251

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