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The expected cash flows from a 4-year investment is shown below. If r = 4.5%, calculate the PV of the investment. Hint: draw a timeline
The expected cash flows from a 4-year investment is shown below. If r = 4.5%, calculate the PV of the investment. Hint: draw a timeline so you can visualize the placement of the cash flows.
Year | CF |
0 | 2,500 |
1 | 3,500 |
2 | 5,500 |
3 | 7,500 |
4 | 9,500 |
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