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What is the value of your windfall today

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Reference no: EM133115452

You have just received a windfall from an investment you made in a friend's business. You will receive end-of-year cash flows of $14,050, $3,250 and $16,480 for years 1 to 3, respectively. If the annual discount rate is 6%.

a) What is the value of your windfall today?

b) What is the value of your windfall at the end of year 3?

Reference no: EM133115452

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