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A good friend has offered to let you purchase a new investment instrument. The deal is you pay $5,000 today. In return, he will give
A good friend has offered to let you purchase a new investment instrument. The deal is you pay $5,000 today. In return, he will give you back payments of $1,000 one year from today, $2,000 two years from today and $3,000 three years from today. If your opportunity cost of capital is 10%, should you accept the deal? Solve the Full question with all calculations and working note
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