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2. Suppose we were examining an asset that promised to pay $500 at the end of each of the next three years. The cash flow

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2. Suppose we were examining an asset that promised to pay $500 at the end of each of the next three years. The cash flow from this asset are in the form of a three-year, s500 annuity. If we wanted to earn 10 percent on our money, how much would we offer for this annuity

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