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Consider the Following Timeline: If the Current Market Rate

Question 28

Multiple Choice

Consider the following timeline: Consider the following timeline: If the current market rate of interest is 12%, then the value of the cash flows in year 0 and year 2 as of year 1 is closest to: A) $257.29 B) -$78.71 C) $1.29 D) $78.71 If the current market rate of interest is 12%, then the value of the cash flows in year 0 and year 2 as of year 1 is closest to:


A) $257.29
B) -$78.71
C) $1.29
D) $78.71

Correct Answer:

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