Determining the approximate value of investment


ABC Electronics is considering an investment that will have cash flows of $16,000, $5,000 and $4,000 for years 1 through 3. What is the approximate value of this investment today if the appropriate discount rate is 9% per year?

$23,250

$27,250

$21,970

None of the above

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Finance Basics: Determining the approximate value of investment
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