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You Are Given the Following Cash Flow Information

Question 20

Multiple Choice

You are given the following cash flow information.The appropriate discount rate is 12 percent for Years 1−5 and 10 percent for Years 6−10.Payments are received at the end of the year. You are given the following cash flow information.The appropriate discount rate is 12 percent for Years 1−5 and 10 percent for Years 6−10.Payments are received at the end of the year. What should you be willing to pay right now to receive the income stream above? A) $166,866 B) $158,791 C) $225,000 D) $125,870 E) $198,433 What should you be willing to pay right now to receive the income stream above?


A) $166,866
B) $158,791
C) $225,000
D) $125,870
E) $198,433

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