Lieu of those future cash flows

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Due to an accident, you will be compensated with $1000 every year for three years and $2000 every year thereafter for another three years. How much would you be willing to take today in lieu of those future cash flows, assuming that you could earn an 8% interest on the money if you had it today.

a. $13,868.64 b. $6,668.66 c. $5,671.53 d. $9,000.00 e. None of the above

Reference no: EM13930107

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