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Interest rates in the economy are 8% per year for the one-year horizon and 10% per year for the twoyear horizon. You expect a cash

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Interest rates in the economy are 8% per year for the one-year horizon and 10% per year for the twoyear horizon. You expect a cash flow of 500$ one year from know and another 500$ two years from now. What is the present value of the cash flows you expect? a. 1,000 \$ b. 867$ c. 8925 d. 779$ e. 876$ f. 912S g. 818S h. 899$

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