An investment on 1st January year 1 has expected receipts of on 31stDecember of each year of €900 for 4 years. The time value of money is 8%. What is the capital value as at 1st January for year 3 if it is discovered at that point in time that the expected receipt for year 4 will be €1,000? Use an ex-ante approach in your calculations.

a). €1,434
b). €1,449
c). €1,486
d). €1,507

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