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Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 $ 5,000 Year 3 Total 5,000 7,000
Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 $ 5,000 Year 3 Total 5,000 7,000 $ 17,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the present value of these cash inflows?
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Understanding the Problem Problem Calculate the present value of cash inflows over three years Cash inflowsYear 1 5000Year 2 5000Year 3 7000 Discount rate 17 Solution Step 1 Find the Discount Factors ...Get Instant Access to Expert-Tailored Solutions
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