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Question 5 (Mandatory) (12 points) MULTIPLE CASH FLOWS: My friend Anne is planning to remodel her home. The remodel will require an expenditure of $10,000

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Question 5 (Mandatory) (12 points) MULTIPLE CASH FLOWS: My friend Anne is planning to remodel her home. The remodel will require an expenditure of $10,000 one year from now, an expenditure of $8,000 two years from now and an expenditure of $5,000 three years from now. Her ex-husband has agreed to finance the remodeling by investing a lump sum amount today. How large must the amount be if the ex- can earn 7% on his investments? (14 points) a. $ 21,843.83 b. $ 20.414.79 c. $ 23,000.00 d. $ 26,243.16 1/5 points)

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