If Lucy Earns a 6 Percent After-Tax Rate of Return

question 137

Multiple Choice

If Lucy earns a 6 percent after-tax rate of return, $8,000 received in four years is worth how much today? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)

• A)$8,000
• B)$7,544
• C)$8,989
• D)$6,336
• E)None of the choices are correct.

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