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In his opinion, 1) (6 pts) Bob's best guess is that Investment A will be worth $95 in three years. e of 9% could be

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In his opinion, 1) (6 pts) Bob's best guess is that Investment A will be worth $95 in three years. e of 9% could be worth a little more or it could be worth a little less, so Bob assigns a discount rat per year to this investment. Carol's best guess is that investment A will be worth S10 in three years. In her opinion, it could be worth much more or it could be worth much less, so Caro assigns a discount rate of 11% to this investment. What is Bob's Intrinsic Valuation of Investment A? what is Carol's intrinsic valuation of Investment A, If Investment A currently sells for $70, would Bob consider buying Investment A? (Yes or No) If Investment A currently sells for $70, would Carol consider buying Investment A? (Yes or No)

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