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compute the present value of a $100 cash flow for the following combinations of discount rates and times. a. r=8 percent. t= 10 years
b. r=8 percent. t= 20 years
c. r=4 percent. t= 10 years
d. r=4 percent. t= 20 years

  • finance - ,

    an EXCEL spreadsheet is very useful for these types of calculations.
    PV = sum[ 100./((1.+r)^i) ]
    where i goes from 1 to t.

    take it from here.

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