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Question 10 (1.5 points) (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will pay $2,500

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Question 10 (1.5 points) (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will pay $2,500 at the end of Year 1. $5.000 at the end of Year 2 and $7,500 at the end of Year 3, plus a fixed but currently unspecified cash flow, X, at the end of each year from Year 4 through Year 7 Breck is essentially riskless, so you are confident the payments will be made. You regard 4% as an appropriate rate of return on a low risk but illiquid 7-year loan. What cash flow must the investment provide at the end of each of the final 4 years, that is what ? OA) 3,503.57 B) 3,396.49 C) 3.771.67 D) 4,058.82 E) 3,969.81

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