There is a cash inflow of $500 today and a cash outflow of $500 two years from now. If the current market rate of interest is 8%, then the value of these cash flows as of year 1 is closest to: Group of answer choices 0 $1003 $540 $77

There is a cash inflow of $500 today and a cash outflow of $500 two years from now. If the current market rate of interest is 8%, then the value of these cash flows as of year 1 is closest to: Group of answer choices 0 $1003 $540 $77

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EA: If you invest $12,000 today, how much will you have in (for further Instructions on future value in...

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There is a cash inflow of $500 today and a cash outflow of $500 two years from now. If the current market rate of interest is 8%, then the value of these cash flows as of year 1 is closest to:

Group of answer choices

$1003

$540

$77

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