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If the Interest Rate Is 5 Percent and Cash Flows

Question 138

Multiple Choice

If the interest rate is 5 percent and cash flows are $3,000 at the end of year one and $5,000 at the end of year two,then the present value of these cash flows is:


A) $7,392.29.
B) $8,400.34.
C) $4,222.50.
D) $400.74.

Correct Answer:

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