The appropriate discount rate is 6 percent for years 1-4


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You are given the following cash flow information. The appropriate discount rate is 6 percent for Years 1-4 and 7 percent for Years 5-10. Payments are received at the end of each year.

Year Amount

1-4 $45,000

5-10 $30,000

What is the present value of the income stream above?

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Finance Basics: The appropriate discount rate is 6 percent for years 1-4
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