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Robert Williams is considering an offer to sell his medical practice, allowing him to retire five years early. He has been offered $500,000 for his

Robert Williams is considering an offer to sell his medical practice, allowing him to retire five years early. He has been offered $500,000 for his practice and can invest this amount in an account earning 10 percent per year, compounded annually. If the practice is expected to generate the following cash flows, should Robert accept this offer and retire now? Show your calculations.

End of Year

Cash Flow

1

$150,000

2

150,000

3

125,000

4

125,000

5

100,000

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