Assignment:
At the end of two years, the cash flow is $23,800. The discount (interest) rate in year one is 5%, and in year 2 is 10%. What is the net present value of that cash flow? Provide two significant digits after the decimal point.
(Hint: If you invested $1 at time zero, what would you have at end of year 2?)
Provide complete and step by step solution for the question and show calculations and use formulas.