You have just purchased an investment that generates the following cash flows for the next four...

Question

Question

Answer 1

Answer #1


Present value of the investment

Year	Cash Flow	PV Factor	PV Of Cash Flow
a	b	c=1/1.132^a	d=b*c
1	3644	0.8834	$ 3,219.08
2	2697	0.7804	$ 2,104.69
3	445	0.6894	$ 306.78
4	3696	0.6090	$ 2,250.85
Present Value			$ 7,881.40

Answer 2

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