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Question 1 6 . An investment pays $ 1 , 0 0 0 per year for the first five years and $ 2 , 0

Question 16. An investment pays $1,000 per year for the first five years and $2,000 every two years for ten years following (i.e.,5 payments). If the required rate of return is 8 percent compounded annually, how much is this investment worth? Assuming payments occur at the end of the year. (5 marks)

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