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( DRAW THE CASH FLOW DIAGRAM AND SOLVE USING COMPIUND INTEREST TABLES IF NEEDED ) Your Auntie promises to give you $ 1 0 ,

(DRAW THE CASH FLOW DIAGRAM AND SOLVE USING COMPIUND INTEREST TABLES IF NEEDED) Your Auntie promises to give you $10,000 per year for the next 10 years out of her profits from an investment project she intends to establish in Atlantic City, if you will assist her with $50,000 now. She maintains that you will be making a 100 percent return on your loan because you will receive a total of $100,000 in repayment for it. On an equal risk investment, your minimum attractive rate of return is 18 percent before taking into account the unfavorable effects of inflation and income tax. Should you lend your aunt the money?

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