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An investment costs $1,200 today, and it produces future cash flows of negative $700 at the end of year 1; $1500 at the end of
An investment costs $1,200 today, and it produces future cash flows of negative $700 at the end of year 1; $1500 at the end of year 2, and 900 at the end of year 3.
A. What is the value of the investment today if you can earn 7% annually?
B. Find the future value of these cash flows in 3 years.
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