Calculate the pv of the cash flows and then duration

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Guess the duration of the following investment. Is it less than two years, two to three years, three to four years, or greater than four years? After your guess, use a discount rate of 6 percent and calculate the PV of the cash flows and then duration.

Years from now       1 2 3 4

Cash flow      $ 0 $ 1,000 $ 5,000 $ 2,000

Reference no: EM13887121

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