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In year three of a product's life, the cash flows expected are: marketing cost of $100,000, production cost of $200,000, and a revenue of $800,000.
In year three of a product's life, the cash flows expected are: marketing cost of $100,000, production cost of $200,000, and a revenue of $800,000. At 6.5% interest rate, what is the present value (at time zero) of the cash flow of year three? (assume all cash flows occur at the end of the year).
(Give one decimal place)
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