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a) Suppose that an asset generates cash flows of $100, $200, and $300 at the end of years one, two, and three, respectively. If the
a) Suppose that an asset generates cash flows of $100, $200, and $300 at the end of years one, two, and three, respectively. If the discount rate is 10%, which of the following answers is the only one that can be correct? [Note: Show calculations to justify the answer chosen] a. The PV = $600, FV3 = $600. b. PV > $600, FV3 < $600. c. PV = $481.59, FV3 = $641.00.
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