a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 $10 2 $20 CF b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 $50 2 $40 CF c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? CETTE a. What is the present value of the following set of cash flows, discounted at 10% per year? 2 $20 Year CF 1 $10 The present value of the cash flow stream is $. (Round to the nearest cent.) 3 $30 3 $30 3 $30 $40 $20 $40 5 $50 5 $10 5 $50
a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 $10 2 $20 CF b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 $50 2 $40 CF c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different? CETTE a. What is the present value of the following set of cash flows, discounted at 10% per year? 2 $20 Year CF 1 $10 The present value of the cash flow stream is $. (Round to the nearest cent.) 3 $30 3 $30 3 $30 $40 $20 $40 5 $50 5 $10 5 $50
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:a. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
2
$20
CF
$10
b. What is the present value of the following set of cash flows, discounted at 10% per year?
Year
1
$50
2
$40
CF
c. Each set contains the same cash flows ($10, $20, $30, $40, $50), so why is the present value different?
CITED
a. What is the present value of the following set of cash flows, discounted at 10% per year?
2
$20
Year
CF
1
$10
The present value of the cash flow stream is $ (Round to the nearest cent.)
3
$30
3
$30
3
$30
$40
4
$20
4
$40
5
$50
5
$10
5
$50
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