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Problem 7-07 An investment will generate $12,000 a year for 30 years. If you can earn 12 percent on your funds and the investment costs

Problem 7-07 An investment will generate $12,000 a year for 30 years. If you can earn 12 percent on your funds and the investment costs $110,000, calculate the present value of investment. Use Appendix D to answer the question. Round your answer to the nearest dollar. Should you buy it? No a Calculate the present value of investment, if you could earn only 8 percent. Use Appendix D to answer the question. Round your answer to the nearest dollar. Should you buy it in this case? Yes 9

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