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20 An investment paying $1000 in 1 year, $2000 in 2 years and $7000 in 3 years returning 10% p.a. has a present value of:

a. $8129.39

b. $6002.54

c. $7210.20

d. $7821.19

21. An investment paying $2000 in 2 year, $6000 in 4 years and $5000 in 12 years at an interest rate of 5% p.a. has a present

24. What is the expected return from an asset having the following possible returns and associated probabilities? Possible re

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Answer #1

20. A B с D 2 Year Amount PV Factor Present Value 3 1 1000 0.9091 $ 909.09 4 2 2000 0.8264 $ 1,652.89 5 3 7000 0.7513 $ 5,259

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