What is its price if the five-year rate of discount

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Reference no: EM131817991

1. What is the price today of a $200,000 cash flow in 5 years if the discount rate is 2.5%

2. What is the price today of $200,000 to be received in 6 years if the rate of discount is 2.5%? Compare to #5.

3. An asset promises to pay $50,000 in five years and $100,000 in ten years. What is its price if the 5-year rate of discount is 10% and the 10-year rate of discount is 5%?

Reference no: EM131817991

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