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The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow 1 $ 930 2 1,010 3 0 4 1,600 What is the present value of the cash flows?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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Question

The appropriate discount rate for the following cash flows is 8 percent compounded quarterly.

Year		Cash Flow
	1		$	930
	2			1,010
	3			0
	4			1,600

What is the present value of the cash flows?

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