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Suppose an Investment Will Yield $1, 000 After One Year

Question 40

Multiple Choice

Suppose an investment will yield $1, 000 after one year and $2, 000 after two years.What is the present value of this investment if the discount rate is 8 percent?


A) $2, 479.34
B) $2, 640.60
C) $2, 727.27
D) $3, 000
E) $3, 520

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