Present value of the cash flows associated with transaction

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Reference no: EM132071865

Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 5,000 dollars from Middlefield Motors today, pay 16,000 dollars to Middlefield Motors in 1 year(s), receive a cash rebate of 5,200 dollars from Middlefield Motors in 4 year(s), and pay 19,100 dollars to Middlefield Motors in 7 year(s). If the discount rate is 14.35 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is less than zero. Number

Reference no: EM132071865

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