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You have lent your friend $9000. Your friend offers you the following instead of paying the $9000 now. End of year Cash flow 3100 2100

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You have lent your friend $9000. Your friend offers you the following instead of paying the $9000 now. End of year Cash flow 3100 2100 500 4 500 What is the present value of your friend's payments JUsing an opportunity cost of capital of 7 percent) Would you accept your friend's offer Write 1 in the blank if yes Write 2 in the blank if No

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