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An investment of $20,000 now is projected to return $5,000 in one year, $6,000 in two years, $7,000 in three years and $10,000 in four years. What is the net present values of these cash flows at i = 10%?

Using the table of investment year rates on slide 7, find three year accumulation factors for an investor starting in 2002 under the a) investment year method and b) the portfolio method.

Financial Management, Finance

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