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An investment will pay you $200 (cash inflow) at the end of year 1, nothing (zero) at the end of year 2, and -$100 (cash
- An investment will pay you $200 (cash inflow) at the end of year 1, nothing (zero) at the end of year 2, and -$100 (cash outflow) at the end of year 3. The appropriate discount rate is 7.5%. (Timeline required)
a. What is the present value (at t = 0) of all the investment cash flows over the 3-year period?
b. What is the future value of all the cash flows at the end of year 4?
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