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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Consider the following cash flow. At a 6% interest rate, what value of P at the end of Year 1 is equivalent to the benefits at the end of Years 2 through 7?
Â
                              Â
Â
Â
                Year       Cash Flow
1Â Â Â Â Â Â Â Â Â Â Â Â -P
2Â Â Â Â Â Â Â Â +100
3Â Â Â Â Â Â Â Â +200
4Â Â Â Â Â Â Â Â +300
5Â Â Â Â Â Â Â Â +400
6Â Â Â Â Â Â Â Â +500
7Â Â Â Â Â Â Â Â +600
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