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If an investment offers cash flows for 3 years of $150, $200, and $250, what should you do if the current market price of the
If an investment offers cash flows for 3 years of $150, $200, and $250, what should you do if the current market price of the investment is $550? Assume a 5% discount rate. A. Sell it because the intrinsic value is greater than the price B. Buy it because the intrinsic value is greater than the price
C. Sell it because the intrinsic value is less than the price
D. Buy it because the intrinsic value is less than the price
E. Do nothing because it is fairly valued
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