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An investment promises the following cash flow stream: Year 0 Year 1 Year 2 Year 3 Year 4 Cashflow 1000 2000 3000 5000 The discount
An investment promises the following cash flow stream:
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
---|---|---|---|---|---|
Cashflow | 1000 | 2000 | 3000 | 5000 |
The discount rate is 5%. What is the maximum price that you are willing to pay for this investment now?
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