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8.) You are evaluating an investment that will provide the cash flows listed below at the end of each year. You believe that you should

 8.) You are evaluating an investment that will provide the cash flows listed below at the end of each year. You believe that you should earn 11.50% percent compounded  annually on this investment. How much would you be willing to pay for this investment?                                                                                                                                                                                     

                                 

                                                                                                                                                                    

 

                               Year               1                          2                        3                            4                             5                                                                                       

 

                              CFs         200,000               225,000               275,000               325,000               3,500,000                                                                                      

                                                                                                                                                                                                  

                              I                                                                                                                                                                   

                              PV         

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