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In four years, when he is discharged from the Air Force, Steve wants to buy a $26,000 power boat Click here to view Exhibit 14B-1
In four years, when he is discharged from the Air Force, Steve wants to buy a $26,000 power boat Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $26,000 at the end of four years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Seven percent 2. Eleven percent
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