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Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 3

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Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of Si at compound interest: Year 10% 12. 1 0.943 0.909 0.893 1.833 1.736 1.690 3 2.673 2.487 2.402 3.465 3.170 3.037 Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, the present value of the investment cash inflows, assuming an earnings rate of 12%, is $21,259 $3,969 O $22,190 $20,352 Question 26 3.33 pts

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