Pam is in need of cash right now and wants to sell the rights to a $1,000 cash flow that she will receive 5 years from today.If the discount rate for such a cash flow is 9.5%,then what is the fair price that someone should be willing to pay Pam today for rights to that future cash flow?
A) $1,574.24
B) $635.23
C) $260.44
D) $913.24
Correct Answer:
Verified
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