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Evaluate what is present value today of future cash flows

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Problem 1: In 10 years you will begin receiving $184 per year in perpetuity from a family trust fund (first payment is exactly 10 years from today). You have decided to discount these cash flows at a constant interest rate of 5.9%. 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.

Problem 2: How long does it take a present value amount to triple if the expected return is 11.1%?

Reference no: EM132765248

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