Calculate the present value of the income streams A to E
Question and Solution
Calculate the present value of the income streams A to E in Table 1 at an 8 percent interest rate and again at a 10 perc
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Calculate the present value of the income streams A to E in Table 1 at an 8 percent interest rate and again at a 10 percent rate. Suppose the investment behind the flow of income in E is a machine that cost $1,235 at the beginning of year 1. Would you buy the machine if the interest rate were 8 percent? if the interest rate were 10 percent?
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