CONCORDIA

COLE

$0$:$48$:$31$

Maximillian Mancia

$(1)$

Mark

A financial instrument pays the following REAL cash flows $($CF$)$:

Year $0$: $CF=$$$0$

Year $1$: $CF=$$$330$

Year $2$: $CF=$$$350$

Year $3$: $CF=$$$300$

Given the nominal discount rate is $8\mathrm{.}00\%$ and the rate of inflation is $3\mathrm{.}00\%,$ calculate the EXACT $($not approximate!$)$ present value of this financial instrument $($rounded to $2$ decimals$).$

a$.$ $$890\mathrm{.}90$

b$.$ $$843\mathrm{.}77$

c$.$ $$893\mathrm{.}30$

d$.$ $$936\mathrm{.}66$

e$.$ $$924\mathrm{.}84$

Unsure

Key

Attempted

$22$ of $50$

Mark