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An investor is evaluating a boom or bust investment that in some years will generate an excellent cash flow and in some years will generate
An investor is evaluating a boom or bust investment that in some years will generate an excellent cash flow and in some years will generate no cash at all or a negative cash flow. The following projected cash flow reflects this: Yr1 = 100, Yr2 = negative 25, Yr3 = 150, Yr4 = 0, Yr5 = 130. If her minimum required rate of return is 10 percent, what will be the value of her investment at the end of the investment horizon
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