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12) (10 pts) Suppose that we make contributions to a fund of $125 today and $750 in two years for a return of $1000 in

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12) (10 pts) Suppose that we make contributions to a fund of $125 today and $750 in two years for a return of $1000 in one year. First write the Net Present Value as a function of the discount factor . Secondly, use the NPV to calculate the yield rate of this investment (select the larger value for i. Finally, explain whether or not this is a good investment for us

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