Question
Mystic Investments is considering an investment that will bring cash inflows of $7,000 at the end of EACH year for the first three years; $4,000
Mystic Investments is considering an investment that will bring cash inflows of $7,000 at the end of EACH year for the first three years; $4,000 EACH in year 4 and 5; and $3,000 EACH in year 6 and 7. How much should the firm pay for the deal if the discount rate is 9.0%?
a. $30,633
b. $35,000
c. $26,582
d. $11,045
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
