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What is the present value today of the future cash flows

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Problem 1: In 9 years you will begin receiving $197 per year in perpetuity from a family trust fund (first payment is exactly 9 years from today). You have decided to discount these cash flows at a constant interest rate of 7.1%. What is the present value today of these future cash flows? (Hint: draw a time line to illustrate exactly the cash flows for this problem.) Answer to 2 decimal places

Reference no: EM132820738

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