1. Using a discount rate of 6.5 percent, calculate the present value of a $1,000...
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Accounting
1. Using a discount rate of 6.5 percent, calculate the present value of a $1,000 profit payment to be received at the end of a. One year b. Two years c. Three years 2. What is the present value of a firm with a five-year life span that earns the following stream of expected profit? (Treat all profits as being received at year-end.) Use a riskadjusted discount rate of 12 percent
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