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What is the present value of the cash flows

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Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 4,800 dollars from Middlefield Motors today, pay 22,800 dollars to Middlefield Motors in 1 year(s), receive a cash rebate of 9,200 dollars from Middlefield Motors in 4 year(s), and pay 27,800 dollars to Middlefield Motors in 9 year(s). If the discount rate is 3.2 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is less than zero.

Reference no: EM132541262

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