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Interest rates in the economy are 8% per year for the one-year horizon and 10% per year for the two-year horizon. You expect a cash
Interest rates in the economy are 8% per year for the one-year horizon and 10% per year for the two-year 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. 892$ b. 818$ c. 912$ d. 876$ e. 779$ f. 867$ g. 899$ h. 1,000$
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