What is the present value of the expected cash flows

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You are paid to teach classes for the university and wonder how much money the university makes from your graduate-level classes. Based on historical data, you determine that your summer classes for the next seven years will generate an average annual revenue of $93,850. If you discount these cash flows at an annual rate of 8.30%, what is the present value of the expected cash flows?

A) $483,644.36 B) $656,950.00 C) $845,133.52 D) $523,786.85

 

Reference no: EM13271298

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