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01: Ungrouped cash flows) You have been asked to make a $75,000 loan. The borrower ages to the following repayment schedule: End of year l

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01: Ungrouped cash flows) You have been asked to make a $75,000 loan. The borrower ages to the following repayment schedule: End of year l End of year 2 End of year 3 End of year 4 End of year $15,000 $20,000 $25,000 $30,000 Ifyou require a rate of return ofat least 1 1% on your investment, should you enter into this loan? Since the NPV of the deal is (that is, the payments you the amount of the loan), you should enter into this loan contract. (Or if you press"+, IRR/YR" (or [f], IRR) instead of .4, NPV", then you will get IRR- % which is - than your required return of-%; hence, you . cover accept the deal)

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