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Jake is offered a business opportunity promising payments of 1000 at the end of each of the first two years and 3000 in three years
Jake is offered a business opportunity promising payments of 1000 at the end of each of the first two years and 3000 in three years time. He could earn 6% p.a. compounded annually on an alternative investment. What is the NPV of this offer to Jake if the initial investment is 3500?
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