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Date $100 $200 $300 Cash flow If the current market rate of interest is 8%, then the present value (PV) of this timeline as o
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Answer #1

Ans B. $ 502

Year Project Cash Flows (i) DF@ 8% DF@ 8% (ii) PV of Project ( (i) * (ii) )
1 100 1/((1+8%)^1) 0.926                                    93
2 200 1/((1+8%)^2) 0.857                                  171
3 300 1/((1+8%)^3) 0.794                                  238
PV                                  502
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