Question

Consider the cash flow stream given by x=(30,20,10). if an individual is infintely patient, how much would thry value cash flow stream in present dollars?

Answer 1

According to the given data
The cash flow stream is given by x=(30,20,10)
And there is no discount rate given. So it will be Nill.
Therefore, the PV of cash flow = x=(30,20,10) as there will be no compounding of value which is resulting in the PV.
So, finally, the solution is ==>302010

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