Find the value of the payment stream

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Reference no: EM131928615

Question: Now consider the following schedule of payments:

End of Year Payment

0 2,000

1 2,000

2 0

3 1500

4 2500

5 4,000

a. What is the value of this payment stream at the end of Year 5 if the payments are invested at 10.0 percent annually?

b. What payment today (Year 0) would be needed to accumulate the needed $20,000? (Assume that the payments for Years 1 through 5 remain the same.)

Reference no: EM131928615

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