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17:12 moodle.ibs-b.hu INTERNATIONAL BUSINESS SCHOOL IBS Q Question 3 Not yet answered Marked out of 10.00 Flag question 2B) An investment will pay you $1,000

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17:12 moodle.ibs-b.hu INTERNATIONAL BUSINESS SCHOOL IBS Q Question 3 Not yet answered Marked out of 10.00 Flag question 2B) An investment will pay you $1,000 at the end of year 1, $2,000 at the end of year 3, and $3,000 at the end of year 5. If the interest rate is 2%, what is the present value of these cash flows? If the interest rate is 4%, what is the present value of these cash flow? Explain why the PV changes, and what are the limitations of the present value based decision.

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