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Clair Dunphy will receive a confirmed future payoff from an investment that she made in a business in Ireland. It will pay Clair 10,000 one
Clair Dunphy will receive a confirmed future payoff from an investment that she made in a business in Ireland. It will pay Clair 10,000 one year from today, 20,000 two years from today, and 30,000 three years from today. The interest rate is 5% per year.
A. What is todays present value of Clairs investment payoffs?
B. What is the future value of Clairs investment payoffs exactly three years from today (on date of last payment)?
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