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Problem 14.026: Calulate PW for a mix of CV-$ and future-$ cash flows Some of the following future cash flows have been expre
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Answer #1
PV Factor = 1/(1+r)^t
r = rate of interest and t = year(s)
Rate of Interest = Inflationary rate + rate of return
= 9% + 3% = 12%
CV is already at PV, so we have taken factors of only remaining Year 3 & 4 cashflows
Year Cash Flow(A) PV Factor(B) PV(A*B)
      -                15,500               1.000      15,500
       3              33,500               0.712      23,845
       4              14,100               0.636        8,961
       7              26,700               1.000      26,700
Present Worth of All Cash Flows     75,005
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