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An Investment on January 1 Year 1 Has Expected Receipts

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An investment on January 1 year 1 has expected receipts of on December 31 of each year of €900 for 4 years.The time value of money is 8%.What is the capital value as at January 1 for year 3 if it is discovered at that point in time that the expected receipt for year 4 will be €1000.Use an ex-ante approach in your calculations.


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