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Posted on Sep 05, 2024

I am thinking about making an investment for grad school and will pay off $ 1 , 0 0 0 but am not sure when.

I am thinking about making an investment for grad school and will pay off $

1, 000

but am not sure when. The cash flow can arrive at any time

(1

year,

2

years, etc.

)

and all have equal likelihoods.

The discount rate is

12 % .

What is the present value of the cash flow?

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