Determine what is the present value of the cash flow

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You are expecting 4 annual payments of $200, followed by one lump sum payment of $1200, then 5 annual payments of $500 followed by another lump sum payment of $2,000 and 10 annual payments of $1,500.

Problem 1: What is the present value of this cash flow if

(a) the first payment starts immediately and

(b) the first payment starts in the next period? The discount rate is 12%.

Reference no: EM132920918

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