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You want to start a food-truck business. It is expected to generate after-tax cash flows of $40,000 per year in the years 1 through 4 and $50,000 per...

You want to start a food-truck business. It is expected to generate after-tax cash flows of $40,000 per year in the years 1 through 4 and $50,000 per year in the years 5 through 8. If you discount these cash flows at an annual rate of 10%, what is the present value of your expected cash flows?

a. $285,288 b. $235,048 c. $167,943 d. $828,230

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working out the present values (40000/1.1 1 )+ (40000/1.1 2... View the full answer

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