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You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C

You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

Investment

End of Year

A

B

C

1

$

1,000

$

1,000

$

4,000

2

2,000

1,000

4,000

3

3,000

1,000

(4,000)

4

(4,000)

1,000

(4,000)

5

4,000

5,000

14,000

What is the present value of each of these three investments if the appropriate discount rate is 13 percent?

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