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Consider an investment project where the cash flow pattern repeats itself every five years forever. Use...

Consider an investment project where the cash flow pattern repeats itself every five years forever. Use the capitalized equivalent method to compute the present worth of this project with an interest rate of 16.5%.
The cash flow for the five years is given below: ($)
106
106
67
67
29

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Expert Solution

Year Cash Flow PVF at 16.5% PV
1      106.00                     0.8584         90.99
2      106.00                     0.7368         78.10
3         67.00                     0.6324         42.37
4         67.00                     0.5429         36.37
5         29.00                     0.4660         13.51
Present Value      261.35

jeff jeffy answered 2 years ago
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