How much is the investment product worth to you today

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Reference no: EM131971880

You are looking at investing in a new investment product which will generate cash flows of $2,000 next year and the cash flows will grow by 5% per year.

You will receive payments for the following 6 years (a total of 6 payments including the first payment of $2,000 next year).

If the appropriate discount rate to evaluate the product is 4%, how much is the investment product worth to you today?

Reference no: EM131971880

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