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13-06-2020
Business

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Consider an investment that will return $1,500 at the end of every year for the next 45 years. The discount rate is 6%. What is the present value of this series of cash flows?

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Kiwiviper Kiwiviper

13-06-2020

Answer:

108.98

Explanation:

Present Value Formula

Present value is compound interest in reverse: finding the amount you would need to invest today in order to have a specified balance in the future. Among other places, it's used in the theory of stock valuation.

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