Chapter 8 Net Present Value and Other Investment Criteria 1. You have the following cash...

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Chapter 8 Net Present Value and Other Investment Criteria 1. You have the following cash flow stream expected over the next ten years: Year Cash Flow 1, 2 250,000 3,4,5 300,000 6,7 325,000 8 250,000 9 200,000 10 150,000 Given the cash flow stream would you pay: a. $2,000,000 for the right to receive this stream if you require and 15% return. b. $1,200,000 for the right to receive this stream if you require and 15% return. c. If you require a 10% return how much would you pay? d. If you require an 8% return how much would you pay

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