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A business promises to pay the investor of $5,000 today for a payment of $1,250 in one year's time, $2,500 in two years' time and

A business promises to pay the investor of $5,000 today for a payment of $1,250 in one year's time, $2,500 in two years' time and $2,500 in three years' time. What is the present value of this business opportunity if the interest rate is 8% per year?

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Essentials Of Managerial Finance

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