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Five Years Ago,you Paid for the Right to Receive Twelve

Question 114

Multiple Choice

Five years ago,you paid for the right to receive twelve $25,000 annual end-of-the-year cash flows.If discounting the cash flows at an annual rate of 8%,what did you pay for these cash flows back then?


A) $474,428.16
B) $300,000.00
C) $128,223.20
D) $188,401.95

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