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Assume you will receive $2,500 a year in Years 1 through 5, $6,000 a year in years 6 through 8, and $8,000 in year 9

Assume you will receive $2,500 a year in Years 1 through 5, $6,000 a year in years 6

through 8, and $8,000 in year 9 with all cash flows to be received at the end of the year.

If you require a return of 12 percent annually, what is the present value of these cash

flows?

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