Arona would like to receive $15,820 each year for the next 5 years, starting today. Then she hopes to receive $17,500 per year at the beginning of the 6th year for an additional 5 years. In total 10 payments. Assume an interest rate of 6%. Find the present value of this cash flow stream. 2. Find the future value of this cash flow stream please use formula or any necessary diagream

Because payment is due today or at the starting of the year, this is annuity due problem. For PW =…

Answered: Arona would like to receive $15,820…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Arona would like to receive $15,820 each year for the next 5 years, starting today. Then she hopes to receive $17,500 per year at the beginning of the 6^th year for an additional 5 years. In total 10 payments. Assume an interest rate of 6%.

Find the present value of this cash flow stream.

2. Find the future value of this cash flow stream

please use formula or any necessary diagream

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