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for business mangment please show work Question 4. (5 pts total) You were recently approached by a friend asking you to invest into a project.
for business mangment please show work
Question 4. (5 pts total) You were recently approached by a friend asking you to invest into a project. The project will last for 7 years. If you agree to invest, you will receive $900 in annual net benefits. (For simplicity, assume you will receive annual payment at the end of every year). Because this is a higher risk investment, you estimate an interest rate 10%. a. What is the PV of the series of payments you expect to receive for the project? 3 pts b. Your friend is asking you to invest $4,500 today. Strictly from a financial standpoint, is this a good investment? Why or why not? 2 pts Step by Step Solution
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