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Evaluate what is present value today of future cash flow

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Problem 1: Next year you will begin receiving $164 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 5.7%. 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: EM132659160

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