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7200 14. Your broker offers you an investment opportunity that will pay you $400 per year for 10 years beginning 5 years from now. He
7200 14. Your broker offers you an investment opportunity that will pay you $400 per year for 10 years beginning 5 years from now. He quotes you a price of $1200. Your required return on investments of this risk is 15%. a. 10 points. What is the value of this investment today? b. 2 points. Should you invest? Why or why not? (Explain in terms of required return.)
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