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If the Present Discounted Value of a Payment Is $1,000,000

Question 74

Multiple Choice

If the present discounted value of a payment is $1,000,000 and there is a 40 percent chance that the payment will not occur,then the expected value is


A) $600,000.
B) $400,000.
C) $1,000,000.
D) $1,400,000.

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