Present value of three year cash-flow stream

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1. Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if:

A) your interest rate is 5%?

B) Same question, but your interest rate is 20%?

2. What is the present value of the following three year cash-flow stream if your interest rate is 6%.... Year 1 $200, Year 2 $400 Year 3 $300 ?

Reference no: EM1330181

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