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Calculate the present value

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Reference no: EM132390691

Please consider the following scenario.

A financial institution offers you the following:

If you deposit $10,000 for 5 (five) years, they promise to give you $14,000. The risk-free interest rate in the market is 5%. Calculate the present value of $14,000 and decide whether it will be a good investment or not? Please, explain.

Reference no: EM132390691

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