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johnpaech johnpaech
wrote...
Posts: 1098
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6 years ago
Consider the following time line:

If the current market rate of interest is 8%, then the present value of this timeline is closest to:
A) $1000
B) $857
C) $860
D) $926
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
B
Explanation:  B) PV = FV/(1 + r)n = 1000/(1.08)2 = 857.34 or approximately $857
johnpaech Author
wrote...
6 years ago
Thanks for helping with my corporate finance course
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