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Determine the present value of this note

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Question - Ben has agreed to the immediate down payment of P1,000 but would like the not for P4,000 to be payable in full at the end of the fourth year. Because of the increased risk associated with the terms of this note, Junio corporation would apply an 8% discount rate. Determine the present value of this note?

a. P2,940

b. P3,312

c. P3,940

d. P2,557

Reference no: EM132819852

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