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2 . You expect to receive $ 1 0 0 , 0 0 0 in five years. Assume that the appropriate discount rate is 1
You expect to receive $ in five years. Assume that the appropriate discount rate is a What is the present value of this cash flow, discounted back to year b What is the present value of that present value, discounted back to year c What is the present value of the $ cash flow in year discounted back to year d How should the answer in question c compare with the answer in question b Explain!
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