What is the present value of year cash flow
Problem:
Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this 20 year cash flow. Use a 11% discount rate.
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What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules?
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What is the present value of this 20 year cash flow. Use a 11% discount rate.
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