How much would you value this cash flow

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Reference no: EM131052606

Assume that you have been quoted an investment that will pay you $1000 each month for the next 40 years. If you are quoted a 5.00% rate compounded monthly.

1. How much would you value this cash flow?

2. What if the rate was compounded daily? Note: the cash flows remain monthly

Reference no: EM131052606

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