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5. An investor has been offered a three-year investment opportunity. The cash flows from the investment are shown below: The investor is unsure about the
5. An investor has been offered a three-year investment opportunity. The cash flows from the investment are shown below: The investor is unsure about the future of the economy, so he wants a larger return for future cash flows. For year 1 , he wants a 6.00% return. For year 2 , he wants a 8.23% return, and for year 3 , he wants a 11.00% return. What is the most that the investor will pay for this opportunity? A. $1,057.85 B. $1,157.85 C. $1,257.85 D. $1,357.85 E. $1,457.85
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