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Rounded up to the nearest dollar, compute the expected present value of the following possible cash flows occurring at the end of year 1 while
Rounded up to the nearest dollar, compute the expected present value of the following possible cash flows occurring at the end of year 1 while considering a 10% annual interest rate:
Cash Flow Outcome | Probability |
$20,000 | 0.60 |
$30,000 | 0.40 |
a. $(20,843) | ||
b. $(21,818) | ||
c. $(21,976) | ||
d. $(23,560) |
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