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Calculate the present value of each cashflow using a discount rate of 7%. Which do you most prefer most?
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Cashflow A: receive $60 today and then receive $60 in four years.
Cashflow B: receive $12 every year, forever, starting today.
Cashflow C: pay $50 every year for five years, with the first payment being next year, and then subsequently receive $30 every year for 20 years.
Cashflow D: receive $9 every other year, forever, with the first payment being next year.
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