Present value of the cash flow streams
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A large networking company wants to incorporate your software into their systems and is offering to pay you $532,000 today, plus $532,000 at the end of each of the following six years for permission to do this.
If the appropriate interest rate is 8 percent, what is the present value of the cash flow stream that the company is offering you? (Round answer to the nearest whole dollar, e.g. 5,275.)
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Solution Summary
This solution helps with a problem about the time value of money.
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Cash FLows
Year Cash Flow
0 532000
1 532000
2 ...
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