What is the present value of your firms cash flows for year

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Reference no: EM13985579

Your consulting firm will produce cash flows of $200,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 5%, and you anticipate inflation of about 1%.

What is the present value of your firm’s cash flows for years 1 through 5?

How would your answer to (a) change if you anticipated no growth in cash flow?

Reference no: EM13985579

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