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Show all steps leading to answer 1) You just bought a new computer for $3,000. The payment terms are 2 years same as cash. If
Show all steps leading to answer 1) You just bought a new computer for $3,000. The payment terms are 2 years same as cash. If you can earn 8% on your money, how much money should you set aside today in order to make the payment when due in two years? Is the money you set aside today the present or future value sum? Explain your answer. 2) Given two dollars, one received a year from now and the other two years from now, Calculate the Discount Factor The rates of return in the first and second years are 20% and 7% respectively
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