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I'm not sure where to start on this one. An investor is considering the following opportunity: He will put capital into a start-up company today.
I'm not sure where to start on this one.
An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the investment until end of the 5th year. At that point, he will receive 10.00 years of $17,800.00 per year. If his discount rate on this investment is 18.00%, what is the value of this opportunity today?
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