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Question #8: You are offered the following investment opportunity: Invest $425 today Receive $100 at the end of Year 1; receive $200 at the end
Question #8: You are offered the following investment opportunity:
Invest $425 today
Receive $100 at the end of Year 1; receive $200 at the end of year 3; and receive $350 at the end of Year 6
You want to earn a required return of 13%
Required: a) Should you invest in this opportunity?
b) Why or Why not?
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