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7. Your brother approaches you with the following deal: Pay me $1,000 at the end of every year for the next 15 years, and
7. Your brother approaches you with the following deal: Pay me $1,000 at the end of every year for the next 15 years, and I will pay you $1,000 at the end of every year for the following 30 years. The interest rate is 5%. Should you accept this deal? (Hint: Calculate the NPV of the deal.)
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
