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5) (4 pts each) A friend offers you the following business deal. You pay him $250 today. He pays you $100 in a year, $75

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5) (4 pts each) A friend offers you the following business deal. You pay him $250 today. He pays you $100 in a year, $75 in two years, $50 in three years, and $50 in four years. a) If the current interest rate is 10% APR, what is the PV of the deal he's offering? b) Do you take the deal? Why or why not

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