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Present Value

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Calculate the present value of the following cash flows discounted at 10%

a. 1,000 received seven years from today
b. 2,000 received 1 year from today
c. 500 received 8 years from today

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a. 1,000 received seven years from today

answer: 513.15

b. 2,000 received 1 year from today

answer: 1,818.18

c. 500 received 8 years from today

answer: 233.25

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