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Consider two streams of cash flows, A and B. Stream A’s first cash flow is $10,500 and is received three years from today. Future cash flows in stream A grow by 4 percent in perpetuity. Stream B’s first cash flow is $-8,400, is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is 12 percent., ,,(a)What is the present value of each stream? , ,(b)Suppose that the two streams are combined into one project, called C . What is the IRR of project C?

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