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An investment is expected to produce cash flows of $1,000 at the end of each of the next 6 years, then an additional lump sum

An investment is expected to produce cash flows of $1,000 at the end of each of the next 6 years, then an additional lump sum payment of $1,500 at the end of Year 6. What is the maximum price you are willing to pay for this investment now if your expected rate of return is 4%?

Select one:

a. $5,324.89

b. $5,974.77

c. $5,568.13

d. $6,427.61

e. $4,854.13

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