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Computation of present value of cash flow stream
At a rate of 8%, what is the present value of the following cash flow stream? $0 at Time 0; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3; and $500 at the end of Year 4?
a) $717.31
b) $625.54
c) $788.32
d) $701.15
e) $690.49
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