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Your company has made the following promises to a group of employees who are retiring today: a cash flow of $900 1 year from today,
Your company has made the following promises to a group of employees who are retiring today: a cash flow of $900 1 year from today, a cash flow of $1,500 2 years from today, a cash flow of $1,800 3 years from today? Assume all investments earn an annual interest rate of 20%, compounded annually. (The discount rate is 20%). What is the minimum amount that the company should set aside today to meet those obligations?
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