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7 . Orlando has decided to open a bookstore / caf and needs to borrow from his sister. In exchange for a lump sum today,

7. Orlando has decided to open a bookstore/caf and needs to borrow from his sister. In exchange for a lump
sum today, he offers to pay her $3500 in one year's time, $4500 in two years' time, $5000 in three years' time
and another $5000 in 4 years' time. If the interest rate is 7%, what is the lump sum Orlando can expect to
receive from his sister if the net present value (NPV) is to be equal to zero? (That is, if his sister should not
make a loss.) Show your work. Draw a timeline.

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