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A) Question 3 Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 4.400 dollars from Middlefield Motors today,
A) Question 3 Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 4.400 dollars from Middlefield Motors today, pay 28,100 dollars to Middlefield Motors in 1 year(s), receive a cash rebate of 9,500 dollars from Middlefield Motors in 4 year(s), and pay 22,700 dollars to Middlefield Motors in 9 year(s). If the discount rate is 13.13 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is less than zero. Number (B) Preeti has an investment that is worth 76,900 dollars and has an expected return of 16.11 percent. The investment is expected to pay her 29,200 dollars in 5 year(s) from today and X dollars in 8 year(s) from today. What is X? Number (C) Red Royal Health just bought a new coffee shop. To pay for the coffee shop, the company took out a loan that requires Red Royal Health to pay the bank a special payment of 14,850 dollars in 7 month(s) and also pay the bank regular payments of 4,460 dollars each month forever. The interest rate on the loan is 0.96 percent per month and the first monthly payment of 4,460 dollars will be paid in 1 month. What was the price of the coffee shop? Number
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