Ricky is thinking about borrowing $10,000 from Fred.He promises Fred cash flows of $5000 for the next three years.If Fred's cost of capital is 10%,what is the present value of the stream of cash flows?
A) $9873.45
B) $12,434.26
C) $11,342.76
D) $8677.69
Correct Answer:
Verified
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