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Question 12 5 pts Jim sold a car and accepted a note promising cash flows of $1,000 at the end of Year 1, and $2,000 at the e
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Answer #1

Present value = Future value/(1+i)^n

i = interest rate per period

n= number of periods

effective price

= 1000/1.079 + 2000/1.079^2 + 2000/1.079^3 + 2000/1.079^4

= 5712.24

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