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Irregular cash flows to an equivalent

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Reference no: EM131670123

If an investment offers the following year-end cash flows:

1 $20,000
2 $15,000
3 $10,000

Using a 10% interest rate, convert this series of irregular cash flows to an equivalent (in present value terms) 3 year annuity. What would be the annuity amount per year?

Reference no: EM131670123

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