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bjm306
Sep 7, 2008, 02:01 PM
A firm currently has 5 million in a fund. Expected cash inflows are 2 million for the next 5 years followed by cash outflows of 3 million for the next 5 years. Assuming interest rate is 8%. how much money will be left in the fund after 10 years.

I think that the problem is a mixture of an annuity and a perpetuity but not sure how to combine them both and I do not have the discount rate to plug the numbers into the formula that I have.