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At the end of two years, the cash flow is $20,800. The discount (interest) rate in year one is 5%, and in year 2 is
At the end of two years, the cash flow is $20,800. The discount (interest) rate in year one is 5%, and in year 2 is 10%. What is the net present value of that cash flow? Provide two significant digits after the decimal point.
(Hint: If you invested $1 at time zero, what would you have at end of year 2? Now work backwards)
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