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You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows
You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 10.9 percent, compounded annually.
End of year 1. $3,024 2. $3,664 3. $1,361 4. $4,863
What is the present value of this investment if 10.9 percent per year is the appropriate discount rate?
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