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Author Question: David has purchased an investment that he expects to produce an annual cash flow of $3,000 for five ... (Read 17 times)

yulisa3298

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on: Mar 29, 2022

Question 1

Compute the present value of the following cash flow discounted at 8%.

End of YearCash flow
1$850
2$500
3$200

◦ $1,374.47
◦ $973.97
◦ $1,174.58
◦ $1,024.65

Question 2

David has purchased an investment that he expects to produce an annual cash flow of $3,000 for five years. He requires an 8% rate of return compounded annually. What is the maximum amount that David can pay and still earn the required rate of return?
◦ $19,008
◦ $15,000
◦ $14,764
◦ $11,978
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by yulisa3298 on Mar 29, 2022

Karla347

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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yulisa3298

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Reply 2 on: Mar 29, 2022
Great answer, keep it coming :)

bblaney

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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