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In the time line below, a cash flow of $1,000 occurs at the end of the third period. $1,000 0 1 2 3 4 The

  1. In the time line below, a cash flow of $1,000 occurs at the end of the third period.

$1,000

0

1

2

3

4

The periodic market interest rate is 12%.

  1. What is the present value at time 0 (zero)? _________________
  2. Over how many periods did you discount? _________________
  3. What was the time value factor you used? _________________

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