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You are to receive $1,000 at the end of one year, $1,200 at the end of two years; $5,300 at the end of three years. If the in

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Answer #1

PV of CF = CF * PVF(r%, n)

Year CF PVF @10% Disc CF
1 $ 1,000.00     0.9091 $    909.09
2 $ 1,200.00     0.8264 $    991.74
3 $ 5,300.00     0.7513 $ 3,981.97
PV of CFs $5,882.79

PV of CFs is $ 5,883

OPtion E is correct.

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