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Tom is comparing two investments. Investment A pays an annual $10000 stream of cash flows that...

Tom is comparing two investments. Investment A pays an annual $10000 stream of cash flows that last for 25 years. Each year the investment pays out at the beginning of the year. Investment B pays a similar stream of cash flows, however, the payments are made at the end of the year. Also, this investment does not make a payment in year 17. Both investments pay a 4.25% rate of return. What is the difference in present value between the two investments?

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jeff jeffy answered 2 years ago
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