Consider the following cash flow stream with a bank paying three percent annual interest. $1,000,...
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Finance
Consider the following cash flow stream with a bank paying three percent annual interest.
$1,000, year 1; $4,000, year 2; $2,500, year 3; $1,600, year 4
What is the value of these cash flows today? What is the value of these cash flows at the end of the four years? Also, what is the relevant time and rate for each amount?
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