Cash flow payment in year 1(CF1) = $20,000
Cash flow payment in year 2(CF2) = $30,000
Cash flow payment in year 3(CF3) = $40,000
Cash flow payment in year 4(CF4) = $50,000
Yield in Market rate in year 1 = 6%
Yield in Market rate in year 2 = 7%
Yield in Market rate in year 3 = 8%
Yield in Market rate in year 4 = 9%
Calculating the Present Value today of cashflow streams:-
Present Value = $18867.92 + 26203.16 + 31753.29 + 35421.26
= $112,245.64
So, the amount you will be willing to pay for this investment stream is $112,245.64
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