6.3 Complex Cash Flow Streams
Actual investment cash flows are often more complicated than the examples we have considered thus far. They frequently consist of multiple sets of annuities or different cash flow amounts mixed in with annuities. In general, they will involve spending money today in the hope of receiving more in the future, and once we bring all the future cash flows back to the present, they can be compared. For example, Marriott recently decided to build timeshare resorts in Dubai, United Arab Emirates. The resorts are close to Dubailand, a giant entertainment complex that is expected to open before 2020 and will be twice the size of the entire Disneyland and Disney World resorts put together.
The resorts’ cash flows are a mixture ...
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