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You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:End of year A B C 1 1,000
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:End of year
A | B | C | |||
1 | 1,000 | 1,000 | 5,000 | ||
2 | 2,000 | 1,000 | 5,000 | ||
3 | 3,000 | 1,000 | (5,000) | ||
4 | (4,000) | 1,000 | (5,000) | ||
5 | 4,000 | 3,000 | 15,000 |
What is the present value of each if these three investments if the appropriate discount rate is 13%?
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