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Problem:

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 4.07 percent, compounded annually: How much is this invests worth today:

End of year: 1. $954 2. $1,345 3. $2,425 4. $2,303

Task:

What is the present value of this investment if 4.07 percent per year is the appropriate discount rate? Explain in detail and provide all workings.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146491

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