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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 7.9 percent, compounded annually.
End of year
1. $2,724
2. $4,294
3. $4,912
4. $4,076
What is the present value of this investment if 7.9 percent per year is the appropriate discount rate?
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