What is the present value of that cash flow

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Problem 1: Assume the risk-free rate is 2.25%. If an investment offers a risk-free cash flow of $100,000 in two years' time, what is the present value (PV) of that cash flow?

A. $92,212
B. $95,647
C. $97,450
D. $100,000

Reference no: EM132929150

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