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What is the present value of investment

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Reference no: EM132134796

Please show formula and detailed explanation.

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 11.1 percent, compounded annually.

End of year

1.  $4,809

2.  $938

3.  $3,185

4.  $409

What is the present value of this investment if 11.1 percent per year is the appropriate discount rate?

Reference no: EM132134796

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