Cash flows associated with this transaction

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Reference no: EM131817441

Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 5,800 dollars from Middlefield Motors today, pay 24,400 dollars to Middlefield Motors in 1 year(s) from today, receive a cash rebate of 6,300 dollars from Middlefield Motors in 4 year(s) from today, and pay 27,900 dollars to Middlefield Motors in 7 year(s) from today. If the discount rate is 7.32 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is less than zero.

Please provide the computation in answer.

Reference no: EM131817441

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