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2. You have been offered an investment that is expected to pay you the following cash flows at the end of each year: Year 1
2. You have been offered an investment that is expected to pay you the following cash flows at the end of each year:
Year 1 $0
Year 2 $0
Years 3-6 $10,000 per year
Years 7-10 $15,000 per year
Years 11-14 $0 per year
Year 15 $20,000
- If you desire to earn a return of 15% on this investment, how much would you be willing to pay for it at time 0? (15 pts)
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