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Question no 5: a.) An investment will pay out $1,000 today and every two years thereafter for the next twenty years (11 cash flow payments).

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Question no 5: a.) An investment will pay out $1,000 today and every two years thereafter for the next twenty years (11 cash flow payments). Assuming that the annual rate is 4%, would you take this investment if it costs $7,100? b.) What is the present value of the investment if it pays every three years instead of two years) (11-cash flow payments)

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