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A broker offers you an investment opportunity that will pay you $5000 a year for the next 5 years, starting 3 years from now. To
A broker offers you an investment opportunity that will pay you $5000 a year for the next 5 years, starting 3 years from now. To take advantage of this opportunity, you need to invest $14,000 up front. Assuming you require a 12% annual return for this type of investment, should you do it? What is the most you should be willing to pay for this investment?
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