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An Investment Promises a Payoff of $195 Two and One-Half

Question 105

Multiple Choice

An investment promises a payoff of $195 two and one-half years from today.At a discount rate of 7.5% per year,what is the present value of this investment?


A) $162.03
B) $162.75
C) $169.47
D) There is not enough information to answer this question.

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