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Find the present equivalent of the cash flow

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Question - A local university has initiated a logo-licensing program with the clothier Holister, Inc. Estimated fees (revenues) are $80,000 for the first year with uniform increases to a total of $200,000 by the end of year 9. Determine the gradient and construct a cash flow diagram that identifies the base amount and the gradient series.

Required - Find the present equivalent of the cash flow given the interest rate i=10%.

Reference no: EM132618866

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