1. The following annual cash flows beginning at the end of year 1 [...

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1. The following annual cash flows beginning at the end of year 1 [$95, $170, $235, $295, $275] are the basis for the following questions:
If the interest rate on deposits is 4.5% what is the present value of the payments.
If the payment of $95 begins on the first day instead of after one year, what is the future value of the account at the end of five years at a 5% deposit rate?
If it cost $950 to buy this cash flow would you invest?
What is the internal rate of return on this cash flow if the first and second amounts are negative and the $95 first payment is paid out immediately?
If this is the cash flow from an investment in a new piece of machinery costing $700 what is the payback period?

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