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Fred and Barney need some investment advice and have asked you to offers. lnvestment that would pay him nothing until five years from today and

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Fred and Barney need some investment advice and have asked you to offers. lnvestment that would pay him nothing until five years from today and then he would receive $40,000 every six months far ten years (20 payments) with the first payment coming five would receive $100,000 every year for ten years with the first of these years from today. He then coming sb months after the last payment of $40,000. Finaly he would receive two payments of $500,000 with the first coming six months after the last $100,000 and the second coming five years after the first payment of $s0o,000. The investment would cost him $725 oday. Barney's investment would pay him $25,000 every year for thirty years with the first of these coming sb months from today. He would also receive $120,000 every five years for the next fifty years with the first coming five years from today and the last coming fifty years from today. Finally he would receive $2,500,000 forty years from today and another $2,500,000 fty years from today. His investment cost him $690,000 today Com fari bo they have an opportunity cost of 8% (semi-annual, should they Using present value and assuming Invest? Show all work

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