In: Finance
(Extra Credit) What is the value of the following cash flows in year 6? What is the value today? Assume interest rates today are 6.5%, then rates will be 6.25% for the next 4 years, 3.75% for the next 3 years, 5.3% for the next 4 years, and 3.75% thereafter.
Year Cash Flow
6 $5,675
8 $9,725
10 $6,750
17 $11,750