Question: PRESENT VALUE. The expected cash flows from a 4-year investment is shown below. If r = 10%, calculate the PV of the investment. Hint: draw

PRESENT VALUE. The expected cash flows from a 4-year investment is shown below. If r = 10%, calculate the PV of the investment. Hint: draw a timeline so you can visualize the placement of the cash flows.

Year

CF

0

1

3,500

2

5,500

3

7,500

4

9,500

$19,850.76

$22,924.35

$25,424.35

None of the above

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