Question: Which answer best approximates the net present value of making a payment of $2,000 in one year and receiving $3,000 three years from today, assuming

Which answer best approximates the net present value of making a payment of $2,000 in one year and receiving $3,000 three years from today, assuming a 6% discount rate? (Refer to the attached Present Value Tables as needed.) Present Value of $1 Periods 3% 4% 5% 6% 7% 8% 9% 1 .971 .962 .952 .943 .935 .926 .917 2 .943 .925 .907 .890 .873 .857 .842 3 .915 .889 .864 .840 .816 .794 .772 4 .888 .855 .823 .792 .763 .735 .708 5 .863 .822 .784 .747 .713 .681 .650 6 .837 .790 .746 .705 .666 .630 .596 7 .813 .760 .711 .665 .623 .583 .547 8 .789 .731 .677 .627 .582 .540 .502 Multiple choice question. $(634) -- net cash outflow $634 -- net cash inflow $(520) -- net cash outflow $520 -- net cash inflow

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