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Sarah is desperately trying to have you as one of her investors in her new restaurant concept, The Goldfish. The proposal is to return you

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Sarah is desperately trying to have you as one of her investors in her new restaurant concept, The Goldfish. The proposal is to return you a single sum of $100,000 at the end of three years. If she promises a 8% rate compounded quarterly, which is higher than your minimum required rate of return, the equity investment asked is $78,850. Should you invest? No, because $78,850 is less than $100,000. No, because the true present value is less $78,850. Yes, because the present value is of $78,850 is the right amount with the interest and compounding and it is higher than your minimum required rate of return Yes, because the future value $100,000 is more than $78,850

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