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Mathematics, 08.06.2020 07:57, rhianna18
You own a pipeline that will generate a 2 million cash return over coming year. The cash flow is declining by 4 percent per year. The discount rate is 10 percent. What is the Pv of the pipeline cash flow if its cash flow are assumed to last forever? And what is the Pv of the cash flow if the pipeline is scrapped after 20 years?
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Answers: 2
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