Problem 5.27 & 5.28 – Present Value of Cash Flows, Discounted Cash Flow Analysis
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Your numbers will vary.
Difficulty – Medium
You're given the appropriate interest rate for a list of 4 years worth of cash flows and are asked to calculate the present value of the cash flows. They may also ask you for the combined future value of the cash flows.
Note: For problem 5.27, you'll likely select compounded quarterly. For problem 5.28, you'll need to select annual. So pay attention!
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