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An investment offers the following year-end cash flows: End of Year Cash Flow 1 $20,000 2 $30,000 3 $15,000 Using a 15 percent interest rate, convert this series of irregular cash flows to an...

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An investment offers the following year-end cash flows:

End of Year Cash Flow

1 $20,000

2 $30,000

3 $15,000

Using a 15 percent interest rate, convert this series of irregular cash flows to an equivalent (in present value terms) 3-year annuity.
Answered Same Day Dec 25, 2021

Solution

Robert answered on Dec 25 2021
119 Votes
An investment offers the following year-end cash flows:
End of Year Cash Flow
1 $20,000
2 $30,000
3 $15,000
Using a 15 percent interest rate, convert this series of i
egular cash flows to an equivalent (in present
value terms) 3-year annuity.
Year Cash flow Discounting Factor@15% PV...
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