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August 23, 2014

Homework Help: Finance

Posted by Daniel on Tuesday, February 14, 2012 at 10:14am.

What is the economic value today of each of the following payment streams if money can earn 7.5%?(Note that the two streams have the same total nominal value.)

a. $1000, $3000, and $2000 due in one, three, and five months, respectively.

b. Two $3000 payments due two and four months from now.

I'm not really sure where to start or how to tackle this problem.

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