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(1) An investment will return $1,000 in cash in each of years 7 and 8 and $500 in year 2. You expect to earn 10%.
(1) An investment will return $1,000 in cash in each of years 7 and 8 and $500 in year 2. You expect to earn 10%. Is the present value (PV) for this investment properly calculated by the expression: $1,000 (PV/A, 10%, 2) (PV/FV, 10%, 6)? (2) For the above investment, is the PV properly calculated by: $1,000 (PV/A, 10%, 2) (1/(1.1)) + $500(PV, 10%, 2)? (3) For the above investment, is the PV also properly calculated by: $1,000/(1.1)8+ $1,000/(1.1)? + $500/(1.1)?? (4) If the $500 cash flow was moved occurred in year 1 instead of year 2 would you expect the PV to decrease
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