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An investment is expected to produce specified variable cash flows each year over a 10 year holding period (see T-Bar below) and is projected to
An investment is expected to produce specified variable cash flows each year over a 10 year holding period (see T-Bar below) and is projected to sell for $45,000 at the end of year 10. Assuming the investor has a 9 percent yield requirement, at what price could the investor purchase this investment to achieve the desired yield? How would I input this information into a financial calculator as well?
$ O ? 1 2 3 3 4 5 6 7 $10.000 $9.000 $8,000 $7.000 $6,000 $5.000 $4.000 $3.000 $2,000 $1.000 8 9 10 + $45.000
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