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What is the fair value of an investment that pays $100 per year in year 1, grows at the rate of 3% and has an

What is the fair value of an investment that pays $100 per year in year 1, grows at the rate of 3% and has an 8% required rate of return?

A.

$2,000.
B.

$1,250.
C.

$909.09
D.

$1,287.50

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