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Ronald Salto is contemplating about investing with his best friend in a restaurant. His friend is promising Ronald a 15 percent on the investment, with

Ronald Salto is contemplating about investing with his best friend in a restaurant. His friend is promising Ronald a 15 percent on the investment, with the following cash flows for the next five years and is asking for $200,000. Should Ronald invest in this venture? Year 1 = $50,000, Year 2 = $55,000, Year 3 = $60,000, Year 4 = $60,000, Year 5 = $60,000 Present Value of $1 Interest factors @15percent: Year 1: .870 Year 2: .756 Year 3: .658 Year 4: .572 Year 5: .497 Please note the answer may be slightly off due to rounding.

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