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Estimate what is present value today of future cash flows

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Problem 1: Next year you will begin receiving $178 dollars per year in perpetuity from your grandparent's family trust fund (first payment is exactly 1 year from today). What is the present value today of these future cash flows if you discount them at 7.8%? (Hint: draw a time line to illustrate exactly the cash flows for this problem.) Answer to 2 decimal points.

Reference no: EM132647098

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