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1. How much would you have to invest today at 8% compounded annually to have $25,000 available for the purchase of a car four years

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1. How much would you have to invest today at 8% compounded annually to have $25,000 available for the purchase of a car four years from now? a. What would be the best method to solve this problem? (Circle your answer) 1. Net present value calculation 2. Present value calculation 3. Capital asset pricing model (Kj=R1+ beta (KmR1) 4. Profitability index. (PV of future flou's divided by the initial investment) b. Use the tool you selected above to solve the problem and state your answer in dollars. c. Why is there a difference between the present value and the future value

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